1(a). (TRUE or FALSE?) We calculate the payback period for aproposed project by adding a project’s positive cash flows, oneperiod at a time, until the sum equals the initial investment. 1(b). (TRUE or FALSE?) When evaluating proposed projects withthe IRR method, those projects with IRRs that are greater than therequired rate of return are rejected. 1(c). (TRUE or FALSE?) If the project’s IRR is greater than orequal to the hurdle rate (discount rate), the project isrejected. . . .
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