Indicate whether the following statements are true or false.

If the internal rate of return $($IRR$)$ of an investment is the same or higher than the hurdle rate, the project should be accepted.

Using a profitability index does not allow management to rank projects of similar risks with different investment amounts.

Net cash flow can not be calculated by adjusting the projected net income from a project for any non$-$cash revenues and expenses.

Capital budgeting decisions are risky because the outcome is uncertain, large amounts are usually involved, the investment involves a longterm commitment, and the decision could be difficult or impossible to reverse.

Projects with shorter payback periods have higher risk, as the company has less time to respond to unanticipated changes.