1. The average rate of return method of capital investment analysis gives consideration to the present value of future cash flow.
   1. True
   2. False
2. The cash payback method of capital investment analysis is one of the methods referred to as a present value method.
   1. True
   2. False
3. If a proposed expenditure of $400,000 for a plant asset with a 4-hyear life has an annual expected net cash flow and net income of $160,000 and $60,000, respectively, the cash payback period is 2.5 years.
   1. True
   2. False
4. If a proposed expenditure of $400,000 for a plant asset with a 4-hyear life has an annual expected net cash flow and net income of $160,000 and $60,000, respectively, the cash payback period is 4 years.
   1. True
   2. False