Part-III: True or False? (50 points) Please determine if the following statements are TRUE or FALSE. Provide short explanations only in the case you think the statement is FALSE. Each question is 2 points. 1. The hurdle rate is the cost of debt needed to fund a project. 2. If the IRR exceeds a project's hurdle rate, the project should be rejected. 3. The hurdle rate should be set so that it reflects the proper risk level for the project. 4. To account for the time value of money with the Payback Period Model, the future cash flow needs to be restated in current dollars. 5. The Discounted Payback Period method is the time it takes to recover the initial investment in future dollars. 6. When we discount a future cash flow with our standard time-value-of-money concepts, we inherently assume that the entire cash flow was received at the end of the year. 7. The Discounted Payback Period method does not correct for the cash flow after the recovery of the initial outflow. 8. The NPV decision criterion is true when all projects are independent and the company has a sufficient source of funds to accept all positive NPV projects. 9. Two projects are mutually exclusive if the acceptance of one project has no bearing on the acceptance or rejection of the other project. 10. Projects are mutually exclusive if picking one project eliminates the ability to pick the other project. 11. If a company has constrained capital, then it can only take on a limited number of projects