1. If the net present value is equal to zero, the project should be accepted True False 2. If the internal rate of return is used to calculate the net present value of a project, the net present value will be zero. True False 3. If the internal rate of return is greater than the required rate of return, the project should be accepted. True False 4. Depreciation itself is not a cash outflow, though it reduces the amount of income taxes that a company must pay. True False 5. All else being equal, a company prefers projects with short cash payback periods, as these benefit the company for longer time periods. True False 6. Budgets are useful in the control process because they provide a basis for evaluating performance. True False 7. There are two main types of budget: operating budgets and sales budget. True False 8. A firm may have a significant amount of loss, as computed under the accrual basis of accounting, yet have a significant net inflow of cash. False