QUESTION 4 Which of the following statements is false? An advantage of the IRR method is that it allows managers to compare deals with different sales prices and costs. NPV and IRR calculations always provide the same accept or reject decisions. When calculating MIRR all negative cash flows are discounted to the present at year zero and all positive cash flows are grown into the future at the WACC rate. When a lender applies its LTV formula to the present value of your project, the higher the present value, the more money it will likely allow you to borrow. QUESTION 5 Which of the following statements is false? Equity financing tends to lower the overall weighted average cost of capital in a hospitality business. Three important components of investment analysis are the weighted average cost of capital, the discount rate, and the capitalization method of valuation. Modified internal rate of return differs from IRFl in that it assumes the cash flow generated by the project is reinvested at the company's cost of capital. The lower the cap rate used to calculate the terminal sales price of the asset, the higher the sales price