1. True or False Discounted cash flow (DCF) analysis generally assumes that firms hold assets passively when it invests in a projects
2. True or False The opportunities to expand a project if the project is successful is a valuable option that should be integrated into the analysis
3. True or False Some companies spend money up front to reduce the cost to abandon a project if the project is a failure
4. True or False Generally, post audits should be conducted to improve the process the next time.
5. True or False Sensitivity analysis provide an unambiguous accept or reject rule.
6. True or False It is rare for the underlying variables of a project to be interrelated.
7. True or False The break-even sales level to breakeven in NPV terms is always lower than the breakeven level of sales necessary to breakeven in income terms.
8. True or False Scenario analysis looks at the project by changing one variable at a time
9. True or False The larger the cost of the project the higher up in the corporation the appropriation request must go for approval.
10. True or False The wrong objective for the division could lead to wrong projects being proposed and accepted.
11. True or False In reality most people are quite comfortable assign probabilities to variables