Which of the following five statements are correct?

In the event of default, the assets not pledged as collateral for outstanding bonds cannot be used to pay off the holders of subordinated debentures until all more senior debt has been paid off.

Notes typically have longer maturities (more than ten years) than debentures. '

The call price of a callable bond is generally set at or below, and expressed as a percentage of, the bond's face value.

In a leveraged buyout (LBO), a group of public investors purchases all the equity of a public corporation.

A callable bond is relatively less attractive to the bondholder than the identical non-callable bond

Which of the following five statements are false?

Overhead expenses are often allocated to the different business activities for accounting purposes.

Managers sometimes continue to invest in a project that has a negative NPV because they have already invested a large amount in the project and feel that by not continuing it, the prior investment will wasted.

Scenario analysis breaks the NPV calculation into its component assumptions and show how the NPV varies as each one of the underlying assumptions change.

Because value is lost when a resource is used by another project, we should include the opportunity cost as an incremental cost of the project.

The opportunity cost of using a resource is the cost it could have created if it was not used.