Question 1

Capital investment decisions are usually short term decisions.

True

False

Question 2

Once a project is live, no further action is required.

True

False

Question 3

Net Present Value and Internal Rate of Return are discounted methods of investment appraisal.

True

False

Question 4

Which of the following uses accounting profit rather than cash flow?

		Payback period
		Accounting rate of return
		Net present value
		Internal rate of return

Question 5

Calculate the payback period given the following data:

Investment 1,000,000

Cash flow year 1 50,000

Cash flow year 2 150,000

Cash flow year 3 200,000

Cash flow year 4 220,000

Cash flow year 5 250,000

Cash flow year 6 300,000