1- Corporate risk is a risk a company would have if the company had only ONE project. ignores both and shareholder diversificationIt is measured by the a or CV of NPV, IRR.

True or False

2- In capital budgeting, the shorter the payback period (PBP) the better However, compare the calculated PBP to a maximum number of years that is determined taking into account the industry norms. To accept the project, your calculated PBP should exceed substantially that maximum number of years.

TRUE OR FALSE

3- The advantage of the payback period (PBP) method in capital budgeting process includeit does not take into account the time value of money no discounting, flows occurring after the payback period.

TRUE OR False