1. Capital budgeting decisions are not affected by return on investment considerations.
True False
2. The time value of money concept works on the principle that a dollar today is worth more than a dollar tomorrow.
True False
3. Neither the payback period nor the accounting rate of return methods of evaluating investments considers the time value of money.
True False
4. The net present value capital budgeting method considers all estimated cash flows for the project’s expected life.
True False
5. The accounting rate of return uses cash flows in its calculation.
True False