$1.$ Select only the statement that are true: A$.$ Companies with well diversified portfolios of projects should only be concerned with the market risk as quantified by the Beta coefficient of the portfolio. B$.$ One method of incorporate risk into a capital budget is to use a risk$-$adjusted discount rate. C$.$ None of the other statements$/$options is correct. D$.$ It is impossible to reduce diversifiable or unsystematic risk by adding more projects to a portfolio. $2.$ Select only the statement that are true: A$.$ Approval of projects can be delayed or even cancelled because of the financial situation in a country. B$.$ Economic feasibility and efficiency are two economic objectives of the engineering design process. C$.$ None of the other statements$/$options is correct. D$.$ Procurement cost is just one of a number of costs that form part of life cycle cost. $3.$ Select only the statement that are true: A$.$ The effects of inflation are removed when the real interest rate is used. B$.$ None of the other statements$/$options is correct. C$.$ R$1000$ today, in $2021,$ will in two years' time, in $2023,$ have the power to purchase goods worth R$950$ today, if a constant inflation rate of $\backslash (5\backslash \%\backslash )$ applies. D$.$ Inflation increases the purchasing power of money. $4.$ Select only the statement that are true: A$.$ When dealing with very complex issues, models are often used to simplify the situation by focusing on a few essential variables.