The payback period method is generally appropriate as a primary decision rule. True False The higher the interest rate and the farther into the future a cash flow occurs, the lower its PW is. True False Equivalent Uniform Annual Cost (EUAC) reflects the annual equivalent invested capital cost of the asset. True False The difference between a project's IRR and the required return (i.e., MARR) is viewed by management as a measure of investment safety. A large difference signals a wider margin of safety (or less relative risk). True False The base alternative is the one that requires the least investment of capital. True False To select the best alternative, we can select the alternative with the largest internal rate of return. True False To be attractive, a capital project must provide a return that exceeds a minimum level established by the top management of an organization. This return is called hurdle rate. True False The payback period method is generally appropriate as a primary decision rule. True False The higher the interest rate and the farther into the future a cash flow occurs, the lower its PW is. True False Equivalent Uniform Annual Cost (EUAC) reflects the annual equivalent invested capital cost of the asset. True False The difference between a project's IRR and the required return (i.e., MARR) is viewed by management as a measure of investment safety. A large difference signals a wider margin of safety (or less relative risk). True False The base alternative is the one that requires the least investment of capital. True False To select the best alternative, we can select the alternative with the largest internal rate of return. True False To be attractive, a capital project must provide a return that exceeds a minimum level established by the top management of an organization. This return is called hurdle rate. True False