Question 1. The Payback method is widely used in capital budgeting because it is simple and does a good job of determining the correct accept/reject decision.
a. True
b. False
Question 2. When using the Internal Rate of Return (IRR) method to evaluate investments, those with an IRR greater than zero should be selected, and those with an IRR less than zero should be rejected.
a. True
b. False
Question 3.When the Cost of Capital (that is, the Discount Rate) increases, the Net Present Value of investments under consideration increases also.
a. True
b. False