1. Payback is frequently used to analyze independent projects because:
A. all relevant cash flows are included in the analysis.
B. it produces better decisions than those made using either NPV or IRR.
C. it is easy and quick to calculate.
D. it considers the time value of money.
E. it is the most desirable of all the available analytic methods from a financial persepective.
2. The discount rate that makes the net present value of an investment exactly equal to zero is called the:
A. internal rate of return.
B. external rate of return.
C. profitability index.
D. average accounting return.
E. equalizer.