Question: 1. A firm may accept a bad project when using only payback period. True or False 2.Based on the IRR decision rule, you accept a

1. A firm may accept a bad project when using only payback period.

True or False

2.Based on the IRR decision rule, you accept a project if the IRR is greater than the cost of capital.

True or False

3.For normal, independent projects, NPV, IRR, and PI always give the same accept/reject decision.

True or False

4.The cash flow from old equipment that is replaced by new equipment is included in the capital budgeting calculation of cash flows from the new equipment project.

True or False

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