Need help with corporate investment and finance questions
1. True --False Risky projects can be evaluated bydiscounting the expected cash flows at a risk-adjusted discount rate.2.True --False Riskyprojects should be evaluated by discounting nominal cash flows at real interestrates.3.True --False Post audits areconducted before the start of the projects.4.True --False Most firms keeptrack of the progress of projects by conducting post audits shortly after theprojects have begun to operate.5.True --False Projects withhigh fixed operating costs have lower break-even points.6.True --False The break-evenpoint in terms of NPV is usually lower than the income break-even point..7.True --False Firms that use incomebreak-even are really ignoring at least the opportunity cost of capital ontheir investments.8.True --False Monte Carlosimulation is a tool where the computer establishes the probabilities for eachof the value driving variables.9.True --False In constructinga simulation model of an investment project, one can ignore possibleinterdependencies between variables.10.True --False Monte Carlosimulation can be used to get the distribution of NPV values for aproject.11.True --False Tangible assetsusually have higher abandonment value than intangible ones.12.True --False The abandonmentoption is a call option, while the option to expand is a put option.13. True --False Inusing a decision tree, you should work backwards eliminating less viableoptions.
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