Question 10 3.5 pts Which capital budgeting technique takes into account that future cash flows must be discounted? O Payback Period Accounting Rate of Return (Initial) Accountin Rate of Return (Average) Net Present Value Amortization Analysis Question 11 3.5 pts It is necessary to know net income on the accrual basis for this capital budgeting technique: O Payback Period Discounted Payback Period Accountin Rate of Return (ARR) Net Present Value (NPV) Internal Rate of Return (IRR) D Question 12 3.5 pts Which of the following is a good guideline regarding the Internal Rate of Return (IRR)? If the internal rate of return is greater than inflation, always accept the project If the internal rate of return is less than the cost of capital, always accept the project If the internal rate of return is greater than the cost of capital, always decline the project If the internal rate of return is greater than the cost of capital, always accept the project O E) The project is potentially acceptable if the IRR is greater than the cost of capital D Question 13 3.5 pts Romeo Santos Company is considering a three-year investment with a cost of $760,000 and a salvage value of $175,000. Net cash flows resulting from the investment are projected to be $300,000 in the first year, $300,000 in the second year, and $125,000 in the third year. The approximate internal rate of return (IRR) for evaluating this investment is: 4% O 7% 8% 9% 11%