Please answer all

In capital budgeting, the accounting rate of return (ARR) decision model:

		Considers the time value of money.
		Ignores cash outflows after the initial investment.
		Incorporates the timing of cash flows.
		Ignores accounting income generated after the break-even point.
		Does not provide an unambiguous decision criterion (rule) regarding the acceptance of capital investment projects.

GuSont Inc. was considering an investment in the following project:

Required initial investment	$990,000
Net annual after-tax cash inflow	$165,000
Annual depreciation expense	$55,000
Estimated salvage value	$165,000
Life of the project in years	15

Assume that cash inflows occur evenly throughout the year. The estimated payback period in years (rounded to one decimal place) for the proposed project is:

		3.7 years.
		4.6 years.
		5.8 years.
		6.0 years.
		7.9 years.

What is the present value of $1 received five years from now (rounded to two decimal places) if the discount rate is 12%?

		$1.76.
		$0.57.
		$1.00.
		$1.60.
		$0.89.

In addition to a one million dollar acquisition cost, an investment requires $200,000 net working capital during its useful life. This investment in net working capital should be:

		Added to the cash outflow each year during the useful life of the investment.
		Disregarded in the capital budgeting decision because working capital is not an expense.
		Treated as an immediate cash outflow that is recovered at the end of the investment's useful life.
		Treated as an immediate expense and a taxable gain at the end of the investment's useful life.
		Treated as an operating expense each year.