In capital budgeting decision-making, the two most important fundamental factors that should be examined by managers are: Select one or more: a. Risk and capital investment b. Risk and rate of return. c. Risk and payback. d. Capital investment and rate of return. e. Payback and rate of return. Which of the following statements about the net present value (NPV) method of evaluating capital investments is false? Select one or more: a. The net present value (NPV) method applies the time value of money to future cash inflows and cash outflows so management can evaluate a project's benefits and costs at one point in time. b. The net present value (NPV) method cannot be used to evaluate a project when the predicted annual net cash flows from the project are uneven (unequal). c. According to the net present value decision rule, when an asset's expected cash flows yield a positive net present value when discounted at the required rate of return, the asset should be acquired. d. If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the investment with more cash flows in the early years will have a higher net present value. e. If an asset has a salvage value, the salvage value is an additional net cash inflow expected to be received in the final year of the asset's life for purposes of calculating the asset's net present value. A major limitation of the internal rate of return (IRR) ethod is. Select one or more: a. Failure to measure time value of money. b. Failure to measure results as a percent. c. Failure to consider the payback period. d. Failure to compare dissimilar projects. e. Failure to reflect varying risk levels over a project's life. Which of the following statements about the payback period method of evaluating capital investment projects is true? Select one or more: a. A disadvantage of an investment project with a short payback period is that it will produce revenue for only a short period of time. b. Managers prefer to invest in projects with longer payback periods to reduce the risk of an unprofitable investment over the long run. C. The payback period method fails to consider how long an investment will generate cash inflows beyond the payback period. d. It two projects have the same risks, the sante payback periods, and the same initial investments, they are equally attractive. e. The payback period method reflects differences in the timing of net cash flows within the payback period