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True or false 10. If a project has a negative Net Present Value (NPV), it should be approved by the firm, as it will likely
True or false
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. 14. Accepting cash-only sales is a risk avoidance policy that a firm may adopt. 15. A term life insurance policy allocates part of the premium paid by the insured party to building equity or cash value. The insured party may then borrow against this equity or cash value, in cash of an emergency. 16. Municipal bonds usually pay a higher interest rate to investors than do a corporate bonds. This is due to the interest payments on municipal bonds being free of federal income tax liability. 17. A bond issued with a C credit rating typically bears minimal risk. 18. A no-load mutual fund does not charge a commission on the amountStep by Step Solution
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