Question: TRUE OR FALSE 1. If a project's NPV is just barely less than one, that means the project loses money. 2. A capital expenditure is

TRUE OR FALSE

1. If a project's NPV is just barely less than one, that means the project loses money.

2. A capital expenditure is an asset acquisition that will provide value to the company for LESS than one accounting period.

3. The Internal Rate of Return (IRR) is the discount rate that will exactly equate the projects original cost with the present value of the future cash flows.

4.You have three projects you are considering. You have calculated the three NPV's and the three IRR's for each. When ranking projects from best to worst according to NPV, the ranking will always equal the IRR ranking (best to worst).

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