1.  The accounting rate of return shows the effect of the investment on the? company's accrual-based income.

True False

2. An annuity is a stream of equal cash payments made at equal time intervals.

True False

3. Discounted cash flow methods incorporate compound interest by assuming that companies will reinvest future cash flows when they are received.

True False

4. If the expected accounting rate of return meets or exceeds the required rate of? return, the decision rule is to not make the investment.

True False