True or False

1. The goal of management is to maximize stockholder wealth.
2. Everything else unchanged, an increase in interest rates will lower the present value of future cash flows.
3. Capital Budgeting analysis focuses on income as opposed to incrementalcash flows.
4. In project analysis, allocations of overhead should be limited to only those that represent additional overhead due to the project.
5. Upon the sale of equipment at the end of its useful life, taxes will be paidwhenever the sales price is greater than the book value.
6. When funds are committed to working capital at the start of a project, these funds are assumed to be recovered at the end of projects life.
7. As the opportunity cost of capital increases, net present value of projectdecreases, everything else held constant.
8. Management that invests in projects with positive net present value, will increase the value of the firm.