1)

The net present value method of evaluating capital projects can be used in capital budgeting even if the expected cash flows from a project are not equal amount each year.

Group of answer choices

False

True

2)

Neither the internal rate of return method, nor the net present value method utilize discounted cash flow techniques

Group of answer choices

True

False

3)

The discounted payback period method of evaluating capital projects does utilize time value of money concepts.

Group of answer choices

False

True

4)

If the net present value method is used to compare two investment alternatives that have equal costs and equal total cash flows, then the alternative having the greater amount of cash flows in the earlier years will have the higher net present value.

Group of answer choices

True

False

5)

Even if a project is considered risk-free, a minimum required rate of return would still be expected.

Group of answer choices

True

False

6)

When a projects cash flows vary from year to year, then the net present value method is easier to utilize than is the internal rate of return method.

Group of answer choices

False

True

7)

Capital budgeting is the process of measuring, evaluating, and selecting both short-term and long-term investment opportunities.

Group of answer choices

True

False

8)

The payback period approach provides a quick way to calculate a project's net present value.

Group of answer choices

False

True

9)

Use of the profitability index by companies, allows for the comparison of the relative desirability of projects requiring differing initial investments.

Group of answer choices

True

False