Question: 4. True or False When depreciation is subtracted as a cash outflow before the tax computation it must be added back to get cash flow

4. True or False When depreciation is subtracted as a cash outflow before the tax computation it must be added back to get cash flow from operations.

22. True or False Internal rate of return is the preferred method to adjust for unequal lives.

26. True or False Failure to recognize potential increases in indirect benefits will lead to overestimation of the projects profitability.

34. True or False For two projects of equal risk and equal size, a payback period of 4 is worse than a payback period of 1.6.

35. True or False Sunk costs are associated with future expenditures and are therefore relevant to the capital budgeting decision.

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