True or False: The NPV and IRR methods can lead to conflicting decisions for mutually exclusive projects. True False Suppose Omni Consumer Products's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost: however, she does know that the project's regular payback period is 2.5 years. If the project's weighted average cost of capital (WACC) is 9%, what Is its NPV? exist291, 693 exist394, 643 exist377, 405 exist343, 168 Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply. The discounted payback period does not take the time value of money into account. The discounted payback period is calculated using net income instead of cash flows. The discounted payback period does not take the project's entire life into account. Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the reinvestment rate assumption in the MIRR is more realistic than the assumption in the IRR. The discounted payback period improves on the regular payback period by accounting for the time value of money. Managers have been slow to adopt the IRR, because percentage returns are a harder concept for them to grasp. True or False: Sophisticated firms use only the NPV method in capital budgeting decisions. True False