I. True $/$ False

$1.$ Time value of money implies that a dollar today is less valuable than a dollar tomorrow.

$2.$ An annuity can be thought as the difference between a perpetuity today and an annuity in the future.

$3.$ One advantage of the IRR rule over NPV rule is that it does NOT require a specific discount rate estimate.

$4.$ NPV always decreases when discount rate increases, regardless of the cash flow pattern.

$5.$ Depreciation has no effect on the tax payment.

$6.$ Risk is always bad for investors.

$7.$ Beta estimates how individual stock returns comove with the risk$-$free rate.

$8.$ The profitability rule allows us to pick the highest PI projects that our budget allows.

$9.$ Equivalent annual cost rule applies to the scenario where we want to compare cost$-$type projects with the same time horizon.

$10.$ The cash flow pattern of a bond differs from that of an annuity only on the final principal payment.