# 1. Which of the following capital decision methods shows the

### Question Description:

1. Which of the following capital decision methods shows the excess or deficiency of the assetâ€™s present value of net cash inflows over its initial investment cost? A. Accounting Rate of Return B. Internal Rate of Return C. Net Present Value D. Payback method 2 Cemenza Company is considering the purchase of a new machine. The machine cost $227,500 and will generate a yearly cash inflow of $35,000. What is the payback period? A. 5 years and 11 months B. 6 years and 6 months C. 7 years and 1 month D. 8 years and 3 months 3 A manufacturing company purchased a new machine for $150,000. The machine will last ten years and will be depreciated using the straight-line method. The estimated salvage value of the machine is zero and should generate a yearly cash inflow of $39,000. Ignoring taxes, what is the accounting rate of return? A. 14% B. 15% C. 16% D. 17%