True or False

1.Capital budgeting decisions focus on cash flows for projects requiring more than one year to complete.

2.The hurdle rate used to evaluate an investment is also called the discount rate.

3.The internal rate of return (IRR) represents the cash flows required to get a net present value of zero.

4.A firm would never choose to accept a long-term investment proposal if the net present value is below zero.

5.The payback method of evaluating long-term investments is the most popular method used by managers.