Consider an investment that has cash flows of $500 the first year and $400 for the next four years. If your opportunity cost is 10%, you should be willing to pay $1,607.22 for this investment. Select one: True or False

The firm's weighted average cost of capital includes the cost of common stock, preferred stock and retained earnings, but not debt. Select one: True or False

The primary objective of all capital budgeting decisions is to increase the size of the firm. Select one: True or False