Short Answer
Indicate whether each of the following statements is true or false.
When unequal cash inflows are expected from a capital investment,the payback period can be calculated by accumulating incremental cash inflows or by using average annual cash inflows.______
The unadjusted rate of return is also called the simple rate of return.______
The unadjusted rate of return can be calculated as average increase in cash inflows divided by net cost of the original investment.______
The unadjusted rate of return does not take the time value of money into account.______
The unadjusted rate of return should be calculated using the initial cost of the investment,rather than the average invested capital.______
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