1. Explain why the timing and quantity of cash flows are important in capital investment decisions. 2. The time value of money is ignored by the payback period and the ARR. Explain why this is a major deficiency in these two models. 3. What is the payback period? 4.What is the accounting rate of return? 5.The NPV is the same as the profit of a project expressed in present dollars. Do you agree? Explain. 6. Explain how the NPV is used to determine whether a project should be accepted or rejected. 7. Explain what a postaudit is and how it can provide useful input for future capital investment decisions, especially those involving advanced technology.