The ultimate success of company operations depend significantly upon sound capital budgeting decisions. True or False

$52$ Such non$-$cash outlays as depreciation charges have nothing to do with the firm's ability to meet its maturing debts. True or False

The present value of an annuity falls as the number of compounding $($discounting$)$ periods per year increases. True or False

The weighted average cost of capital is usually used as the firm's cost of capital. True or False

How long does it take to triple $$45555$ if money grows at $7$ percent compounded annually?

Unsystematic risk is almost non$-$existent when captal markets are efficient and investors are well diversified. True or Faise

Dividends on common stock are usually tax$-$deductible for paying companies. True or False

A perpetuity is a special form of an annuity whose term begins on a definite date and ends on a definite date. True or False

A project with an investment of $$10,000$ has net cashflows of $$9\mathrm{.}000.$ $$3,000,$ and $$1,000$ for each of the next three years. What is the payback. period of the project?

The relationship between the compound value and the present value is reciprocal. True or False

General office expenses or sunk costs $($costs from past decisions$)$ are the irrelevant costs in the capital budgeting analysis because they are not changed by the acceptance of the project. True or False

Today's $$1$ is the same as nextyear's $$1$ thanks to the time value of money. True or False

What is important in capital budgeting is the concept of cash flows rather than the concept of earnings after taxes. True or False

The amortization method refers to the retirement of a debt by making a set of equal periodic payments. These periodic payments include both interest and principal. True or False

The present value of a bond is equal to the present of periodic interest payments and the present value of the maturity value. True or False

The payback method is poor because it ignores the time value of money and returns beyond the payback period. True or False

If the primary goal of the firm is to maximize its market value, market value weights are consistent with the firm's objective. True or False $68$ The marginal cost of capital is defined as$?$