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Can anyone answer T or F for the ones circled? True False O 1. It is correct to say that the payback period (PP) method

Can anyone answer T or F for the ones circled? image text in transcribed
True False O 1. It is correct to say that the payback period (PP) method ignores the time value of money. 2. No project can have more than one internal rate of return (IRR). 0 3. A project's equivalent annual annuity (EAA) is expressed in dollars. 0 4. When the IRR serves as the discount rate, the net present value (NPV) = $0. 5. A project should be accepted if its profitability index (PI) > 0. o O 6, The IRR assumes that all interim cash flows are reinvested at the IRR. 0 7. To graph the IRR, NPVs are arrayed along the vertical axis. 8. If the payback period is 3 years and the cutoff period is 4 years, the project should be rejected. 9. When calculating a project's NPV, it is fair to assume that the cost is already a present value. 10. It is fair to rank projects from best to worst solely on their respective NPVs. 0 0 O O 11. If a project's NPV is equal to zero, the PI must also equal zero. O 12. The EAA is a useful measure even if the projects are not mutually exclusive. 0 O 13. The greater a project's discount (or required) rate, the greater its NPV will be 0 O 14. The first step when solving for the modified IRR (MIRR) is to calculate the present value of the cash inflows. 15. A project is acceptable when its hurdle rate $0 if the discount rate= 15%. 18. If the discount rate is 15%, the profitability index of the project in #17 $0, it is fair to assume that the IRR > the hurdle rate

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