1. You can trust Microsoft Excel's NPV() function to give you the correct NPV measure for any project:

a) True

b) False

2. A firm's WACC is often referred to as the 'hurdle rate' for new project profitability. All new projects must earn at least the firm WACC in order to add value to the company.

a) True

b) False

3. While the capital budgeting measures are easy to calculate, their results are only as good as the estimates of the future cash inflows provided as input.

a) True

b) False