Please answer the True or False Questions.

True False O o 1. It is correct to say that the payback period (PP) method ignores the time value of money. 2. No project can have more than one internal rate of return (IRR). O o O O 3. A project's equivalent annual annuity (EAA) is expressed in dollars. O O 4. When the IRR serves as the discount rate, the net present value (NPV) = $0. o 0 5. A project should be accepted if its profitability index (PI) > 0. O o 6. The IRR assumes that all interim cash flows are reinvested at the IRR. O O 7. To graph the IRR, NPVs are arrayed along the vertical axis. 0 o O o 8. If the payback period is 3 years and the cutoff period is 4 years, the project should be rejected. 9. When calculating a project's NPV, it is fair to assume that the cost is already a present value. 10. It is fair to rank projects from best to worst solely on their respective NPVs. O 0