The Average Rate of Return:

Is not as understandable for management as NPV

Is based strictly on the value of the Initial Investment

Considers the financial statement impact of an investment rather than cash flows consequences

Takes into account the time value of money

None of the above

All of the above

The Cash Payback Method:

Is preferable to the Net Present Value method for evaluating relative profitability

Considers discounted cash flow

Reflects the total life of the investment project

Includes calculations of depreciation tax shields

None of the above

All of the above true or false The Cash Payback method analyzes the relative profitability of various investments. True of false Excess Present Value Index is a measure to determine whether a project meets the required rate of return, and is equal to the NPV of the project divided by the Initial Investment.