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Problem 5 (20pt): Answer whether the following statements are true or false. Each question is 2 points. No explanation is required 1. The data size
Problem 5 (20pt): Answer whether the following statements are true or false. Each question is 2 points. No explanation is required 1. The data size is the most important factor that affects the performance of linear regression. 2. When we compare several alternatives using IRR, we should obtain each alternative's IRR and choose the greatest one. 3. When we compare multiple uncertain projects, in general, a project with the biggest E[NPV) has the smallest Var(NPV). 4. When we discount or compound cash flows, we should always use effective interest rates rather than nominal interest rates. 5. Labor costs (or salaries) are not always variable costs. 6. Opportunity costs are implied costs of the best rejected opportunity. 7. For two investment alternatives A and B, if IRR(A)
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