Question: Answer Please TRUE / FALSE ______ 13. When using the Net Present Value (NPV) method of capital budgeting analysis, a firm will undertake a given

Answer Please TRUE / FALSE

______ 13. When using the Net Present Value (NPV) method of capital budgeting analysis, a firm will undertake a given project only if the present value of the cash flows generated by the investment is less than the initial cost of the investment at t = 0. ______ 14. In Net Present Value (NPV) analysis, the discount rate or interest rate used to discount the projects cash flows back to the present time is the minimum return that must be earned on a project to satisfy the firms investors. ______ 15. When using the Profitability Index (PI) analysis method, the decision rule is to invest in a project that has a Profitability Index value less than 1.0 .

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