1. (TRUE or FALSE) We calculate the payback period for a proposed project by adding a project’s positive cash flows, one period at a time, until the sum equals the initial investment.
2. (TRUE or FALSE) When evaluating proposed projects with the IRR method, those projects with IRRs that are greater than the required rate of return are rejected.
3. (TRUE or FALSE) If the project’s IRR is greater than or equal to the hurdle rate (discount rate), the project is rejected.