1. Accounting income is a sufficient measure of performance because it includes risk and the cost of the invested funds.
A) True
B) False
2. A good capital investment usually has a positive net present value or economic profit across time.
3. An investment project generally provides benefits over a limited period of time referred as an economic life.
A) True
B) False
4. Decisions regarding short-term investments are concerned with day to day operations.
A) True
B) False