Question 6 Which of the following is a disadvantage of using the average accounting return (AAR) rule for capital budgeting? O It is difficult to calculate. O It is not based on market value. O it is blased against long-term projects. It is biased towards liquidity. The information needed to calculate AAR is difficult to obtain. Question 7 Which of the following is NOT a disadvantage of the discounted payback period investment criterion? Arbitrarily chosen cutoff. May reject positive NPV projects. Biased towards liquidity. Ignores cash flows beyond cutoff point Biased against long-term projects