The internal rate of return (IRR) represents the cash flows required to get a net present value of zero.

A.True

B.False

When evaluating long-term investment proposals, firms that pay income taxes can ignore the impact these taxes have on cash flows.

A.True

B.False

A depreciation tax shield is the tax savings resulting from depreciation expense.

A.True

B.False

Both the net present value method and the payback method consider the time value of money.

A.True
B.False