Question: 1. A project that just breaks even on a cash basis must have a zero NPV. True or False 2. Variable costs are equal to

1. A project that just breaks even on a cash basis must have a zero NPV.

True or False

2. Variable costs are equal to zero when production is equal to zero.

True or False

3. Interest expense causes operating cash flow to differ from net income.

True or False

4. A project with a high degree of operating leverage is capital intensive.

True or False

5. A project that just breaks even on a financial basis has a discounted payback equal to the project's life.

True or False

6. Interest expense causes operating cash flow to differ from net income.

True or False

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