True False Questions

1.

We can calculate the present value of perpetuity by dividing the annual cash inflow by the required

interest rate.

2.

Capital budgeting can be defined as analyzing alternative long-term investments and deciding which

which assets may be acquired.

3.

Limited funds being available for investment purposes is never a consideration in firm

making an investment decision..

4.

In the investment decision making process, the time value of money should be given

consideration..