1. Most capital budgeting techniques, including net present value, do not focus on I. cash flow II . net income III. earnings before interest and taxes (A) I and III (B) I and II (C) I only (D) I, II, and III ..................

2. When applying cash flows with discounting to business decisions, the calculation of annual net cash inflow

I. includes the cash inflow times 1 minus the tax rate

IL includes depreciation expense times 1 minus the tax rate

(A) I only

(B) II only

(C) Both I and II

(D) Neither I nor II

................

3. Which of the following would NOT be an advantage of using the net present value method of analyzing capital budgeting decisions?

1. The net present value method can be used when there is a different

rate of return for each year of the project.

II. The net present value method indicates whether an investment will earn the hurdle rate of return.

(A) I only

(B) II only

(C) Both I and II

(D) Neither I nor II

........................

4. If the net present value of a project is negative, it would indicate that

I. the rate of return for the project is less than the discount percentage rate (hurdle rate) used in the net present value computation

II. the present value of cash outflows is less than the present value of cash inflows

(A) I only

(B) II only

(C) Both I and II

(D) Neither I nor II

pl explain answer