Indicate whether each of the following statements is true or false.
1. When unequal cash inflows are expected from a capital investment, the payback period can be calculated by accumulating incremental cash inflows or by using average annual cash inflows.
2. The unadjusted rate of return is also called the simple rate of return.
3. The unadjusted rate of return can be calculated as average increase in cash inflows divided by net cost of the original investment.
4. The unadjusted rate of return does not take the time value of money into account.
5. The unadjusted rate of return should be calculated using the initial cost of the investment, rather than the average invested capital.

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The Answer of Indicate whether each of the following statements is true or false.
1. When unequal cash inflows are expected from a capital investment, the payback period can be calculated by accumulating incremental cash inflows or by using average annual cash inflows.
2. The unadjusted rate of return is also called the simple rate of return.
3. The unadjusted rate of return can be calculated as average increase in cash inflows divided by net cost of the original investment.
4. The unadjusted rate of return does not take the time value of money into account.
5. The unadjusted rate of return should be calculated using the initial cost of the investment, rather than the average invested capital.

Indicate Whether Each of the Following Statements Is True or False