21.Capital budgeting decisions are not affected by return on investment considerations.
22.Capital budgeting decisions that relate to investments in technology are not as risky as other types of capital budgeting decisions.
23.The time value of money concept works on the principle that a dollar today is worth more than a dollar tomorrow.
24.The time value of money concept works on the principle that a dollar tomorrow is worth more than a dollar today.
25.The process of restating cash flows in terms of their present values is called discounting.
26.All capital investment evaluation methods use the time value of money concept.
27.A hurdle rate is the minimum acceptable rate of return for an investment.
28.For projects financed from borrowed funds, the hurdle rate must exceed the interest rate paid on these funds.
29.Lower-risk investments require a higher rate of return compared with higher-risk investments.
30.Neither the net present value nor the internal rate of return methods of evaluating investments consider the time value of money.