Multiple choice

1. New capital-budgeting projects are always new products taken to market. 

TRUE

FALSE 

2. The stock of cash is a type of inventory. 

TRUE 

FALSE

3. If an asset is sold above depreciated value, it may be used to offset gains and thus result in tax savings. 

TRUE 

FALSE

4. Free cash flow is the cash flow in excess of that required to fund all projects with positive and negative net present value when discounted at the relevant cost of capital. 

TRUE

FALSE