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