I am trying to find out why the following problems are false and what makes them true. Acct 2101

5. In a sell or process further decision, management should process further as long as the incremental revenues from additional processing exceed the incremental variable costs. A) True B) False

8. If a cost-based transfer price is used, the transfer price must be based on variable cost. A) True B) False

11. A higher discount rate produces a higher present value. A) True B) False

14. The cash payback technique is a quick way to calculate a project's net present value. A) True B) False

15. The net present value method can only be used in capital budgeting if the expected cash flows from a project are an equal amount each year. A) True B) False

16. The profitability index is calculated by dividing the total cash flows by the initial investment. A) True B) False

19. A major advantage of the annual rate of return method is that it considers the time value of money. A) True B) False