1. In capital budgeting decisions a financial officer will use net income rather than cash flows in their analysis. True or false?

2. The Payback Method of evaluating investment decisions considers all of the cash inflows for a prospective project. True or false?

3. The Internal rate of Return is the discount rate which makes Net Present Value equal to zero.True or false?

4. In a mutually exclusive decision, a firm will choose the project with the lowest Net Present Value. True or false?