Which of the following is true about the simple rate of return method of evaluating investment projects? It is computed by dividing annual net cash flows generated by a project by the initial investment in the project It focuses on cash flows rather than accounting income Depreciation decreases the simple rate of return on a project o Working capital needed for a project reduces the project's simple rate of return QUESTION 14 The discount rate that results in a project's net present value being equal to zero is referred to as the project's: o internal rate of return O profitability index cost of capital simple rate of return