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 ReturnB. Internal Rate of ReturnC. Net Present ValueD. Payback method 2 Cemenza Company is considering the purchase of a new machine. The machine cost $227,500and will generate a yearly cash inflow of $35,000. What is the payback period?A. 5 years and 11 monthsB. 6 years and 6 monthsC. 7 years and 1 monthD. 8 years and 3 months3 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%

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