Page 3 Question 2: Irue /False and EXPLAIN First, recall the logic of the Capital budgeting Methods: (these are all TRUE.) NPV- (the SUM of the Present Values of the cash flows)-the Cost, CFo. NPV - SUM PV's-CFo The IRR method solves for the discount rate that causes the PV of the cash flows to equal the project cost, CFo The Discounted Payback method solves for the time required to pay back CFo with Discounted Dollars Part A: At a cost of capital (discount rate) >0, the Regular Payback Period willalways be greater than the Discounted Payback Period Circle one: TRUE FALSE explain: Part B: if the IRR and the Discount Rate (WACC) are equal, then the npv -o Circle One: TRUE FALSE explain: Part C: If the NPV of a project is positive, and the IRR > 0, then the IRR and the NPV methods will both ACCEPT the project. TRUE FALSE explain