This section consists of Ten (10) statements. Each statement is worth one (1) mark. You are required to indicate which of the statements are true or false.

	Statement	True	False
1.1	In contingent investments, the choice of one investment necessitates undertaking more than one or more investment.	True	False
1.2	Payback period method is the simplest Capital budgeting technique.	True	False
1.3	Internal rate of return method recognised the principle of shareholders wealth maximisation.	True	False
1.4	The net present value technique does not recognises the time value of money.	True	False
1.5	The virtue of the IRR rule is that it does not require the computation of the required rate of return.	True	False
1.6	In order to take a decision about the acceptance or rejection of the project, the IRR is to be compared with the required rate of return, which is also known as cut-off rate or hurdle rate.	True	False
1.7	For calculating proper IRR rate on a trial and error method, if the calculated present value of the discounted inflows is higher than the present value of the outflows, a lower discount rate should be tried.	True	False
1.8	NPV is a discounted technique while IRR is not a discounted technique in evaluating capital budgeting decisions.	True	False
1.9	On account of simplicity, many firms follow pay back method as an Accept or Reject criterion as well as a method for ranking projects.	True	False
1.10	Independent investments do not compete with each other and serve different purposes.	True	False