1. Capital budgeting encompasses only machinery and equipment purchases for a firm. (Points : 1)

True

False

Question 2. 2. Time value of money calculations are not a deal breaker (major factor) in a capital budgeting decision typically. (Points : 1)

True False

Question 3. 3. The payback method of evaluating a long term investment does not take into consideration the time value of money. (Points : 1)

True False

Question 4. 4. The higher the discount rate the less likely an investment will have a positive NPV. (Points : 1)

True False

Question 5.5. The internal rate of return must be above 6% to make an investment worthwhile. (Points : 1)

True False