PART L:8 TRUE/FALSE QUESTIONS ( 1 6%) at 1) A major disadvantage of the NPV model is that if fails to take into account TVM. True or False? 2) The depreciation expense is subtracted from the NI of a company to find the operating cash flow. True or False? 3) Capital budgeting is at the heart of corporate finance because it is concerned with making the best choices about project selection. True or False? 4) The payback period method (PB) is a modification of the NPV to produce the ratio of the PV of the future cash inflows to the PV of the costs. True or False? 5) The discounted payback PB method is economically sound and properly ranks 6) The discounted PB method does not account for the cash flows after the recovery 7) The MIRR model assumes that subsequent cash flows from the project are 8) The NPV profile for a project is a graph showing NPVs at various discount rates. projects across various sizes, time horizons. True or False? of the initial outlay. True or False? reinvested at the IRR of the project. True or False? True or False