Based on the NPV decision rule, you reject a project if the NPV is less than 0. (T/F)

What is capital budgeting?

• The process of deciding which project to do to increase the firms value
• The process of finding the cost to start a new project
• The process of budgeting a companys monthly revenue and cost
• The process of estimating how long the life of a new project is
• none of the above

What is the terminal cash flow?

• The initial investment to start a new project
• The annual cash flows generated by a new project throughout the life of the project
• The special cash flows generated at the end of the project, except for the differential cash flows
• The last years annual cash flows, including the cash flows from the operation of the last year of the project life
• None of the above