True or False
1. Capital budgeting is a short range planning.
2. Financial management is concerned with allocation of scarce resources among productive uses.
3. In capital budgeting decisions the word annual income and annual cash flows are more or less synonymous. company.
4. Future value is equivalent to PV+PV (rate of interest).
5. Ratio analysis is the only tool used to analyze the financial performance of a
6. Sensitivity analysis takes care of estimation errors by using a number of possible. out comes in evaluating a project.
7. One may buy the securities when its value is more than the price.
8. As long as NPV > Zero accept the project.
9. Internal rate of return is nothing but the rate of interest, which equates the present value of future earnings with present investment.
10. The salvage value realizable value at the end of the project will not be added to the last annual flows. ​