Question 1 Capital investment analysis is the process by which management plans, evaluates, and controls investments in fixed assets. True O False Question 2 2 p Methods that do not use present values [Choose] Net present value method and interna rate of return method Average rate of return and cash payback method Methods that use present value [Choose) Question 3 2 pt recognizes that a dollar today is worth more than a dollar tomorrow because today's dollar can earn interest. Average rate of return is sometimes called accounting rate of return and it measures the average investment as a percent of the average income. True False Question 5 The expected period of time between the date of an investment and the recovery in cash of the amount invested is the Question 6 2 pt What are the two advantages and disadvantages of cash payback method that the book mentions? HTML Editor BIVA -A- Ix E333 x x - ED ON V 12pt - Paragraph - Question 7 2p Present value concept consist of present value of an amount an present value of a perpetuity True False Question 8 2pt A(n) is a series of equal net cash flows at fixed time intervals. Question 9 2 pts compares the amount to be invested with the present value of the net The cash inflows. The net present value method compares an investment's initial cash outflows with the present value of its cash inflows. True O False Question 11 2 pts Present value index is computed by total present value of net cash inflows/amount to be invested True False Question 12 2 pts Internal rate of return uses present value concepts to compute the rate of return from capital investment proposal based on its expected net income. True False Vhat are the three advantages and three disadvantages of internal rate of return method the booklists. A = = % = x = | B E I E 0 A CO I V S = O V HTML Editora = - Paragraph - x 12pt O words Question 14 2 pts Income tax does not have any impact on capital investment decisions. True False