True or False

11. If a projects NPV is equal to zero, the PI must also equal zero.

12. The EAA is a useful measure even if the projects are not mutually exclusive.

13. The greater a projects discount (or required) rate, the greater its NPV will be.

14. The first step when solving for the modified IRR (MIRR) is to calculate the present value of the cash inflows.

15. A project is acceptable when its hurdle rate < its IRR.

16. It is not fair to say that all capital budgeting methods have an accept-reject criterion.

17. A project costing $1000 and returning $450 annually for three will have an NPV > $0 if the discount rate = 15%.

18. If the discount rate is 15%, the profitability index of the project in #17 < 1.

19. The project in #17 has a payback period < 2.5 years.

20. When the NPV > $0, it is fair to assume that the IRR > the hurdle rate.