Question: 10. When evaluating mutually exclusive projects, the modified IRR (MIRR) always leads to the same capital budgeting decisions as the NPV method, regardless of the

10. When evaluating mutually exclusive projects, the modified IRR (MIRR) always leads to the same capital budgeting decisions as the NPV method, regardless of the relative lives or sizes of the projects being evaluated. (5 points) a. True b. False 11. A firm should never accept a project if its acceptance would lead to an increase in the firm's cost of capital (5 points) a. True b. False 12.The regular payback method is deficient in that it does not take account of cash flows beyond the payback period. The discounted payback method corrects this fault. (5 points) a. True b. False 13. Under certain conditions, a project may have more than one IRR. One such condition is when, in addition to the initial investment at time = 0, a negative cash flow (or cost) occurs at the end of the project's life. (5 points) a. True b. False

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