1-Capital budgeting decisions are based on free cash flow because free cash flow better reflects when money is received and available for reinvestment than account profits.
True
False
2-Increases in working capital needs should be included as part of the initial outlay of a project, but decreases in working capital for a project should not be considered because they are not guaranteed.
True
False
3-The initial outlay of a project may be reduced by the after -tax salvage value of replaced equipment.
True
False
4-The initial outlay includes the immediate cash outflow necessary to purchase the asset and put it in operating order.
True
False