True or False: (Please give explanations as well)

1) All firms should plowback their earnings into their businesses to grow.

2) In Economy Shipping, the diesel boat would look more favorable if discount rates are higher.

3) The yield to maturity (YTM) for a bond equals the required return of investors

for bonds with a high probability of default.

4) If beta testing a soda in Houston is negative NPV and if rolling it out immediately nationwide is negative NPV, then doing the beta test and then deciding whether to roll out the project nationwide must also be negative NPV.