Question: 1. Projects should be accepted when the profitability index is less than 1. True False 2. When comparing the payback and discounted payback from a

1. Projects should be accepted when the profitability index is less than 1.

True

False

When comparing the payback and discounted payback from a financial point of view, the discounted payback method is preferred over the payback method.

True

False

The IRR method can produce multiple rates of return if the cash flows are nonconventional.

True

False

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