True of False

9. Investments that have a high cash flow in the early years of the project tend to have a more favorable Payback Period.

10. If a project has a negative Net Present Value (NPV), it should be approved by the firm, as it will likely add value to the firm. ______

11. Using an Excel spreadsheet, a small business owner can do a sensitivity analysis or what-if analysis for a proposed capital budgeting project.

12. In a post-audit, procedures are used to determine how well the outcome of a capital budgeting decision correlates with the original proposal and analysis.

13. Pure risk involves only the chance of loss (i.e., such as a potential fire), and is insurable.