Project specific risk or idiosyncratic risk (such as execution risk) increases the systematic risk and thereby the cost of capital of the project. ii. Interest and other financing-related expenses should be included to calculate the project's NPV and make an investment decision whether to accept or reject the project. ili. Using accelerated depreciation, increases the amount of depreciation expense in the earlier periods thereby decreasing the initial benefits and hence, decreasing the NPV. Thus, given a choice, the firm should not choose accelerated depreciation methodology. iv. The option to shut down a project if the project performs poorly after it is started is referred to as a "real option." v. Break-even analysis computes the level of a parameter that makes the project's NPV equal zero.

which is not true