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NEW QUESTION: 1
The following statements are about a health plan's capital budgeting process. Select the answer choice containing the correct statement.
A. An underlying assumption of capital budgeting is that a health plan should keep its investing decisions separate from its financing decisions.
B. A project that has a profitability index of 0.0 has an NPV of zero.
C. Under the internal rate of return (IRR) method, if a project's IRR is less than a health plan's weighted average cost of capital (WACC), then the project's benefits should exceed its costs and the health plan should accept the project.
D. Under sensitivity analysis, a health plan ranks all capital project proposals according to expected rates of return and accepts only those proposals with the highest rankings.
Answer: A

NEW QUESTION: 2

A. Option D
B. Option B
C. Option C
D. Option E
E. Option A
Answer: A,D

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