Which of the following is NOT correct?1, Discounted Cash Flow (DCF) method can be used to calculate the cost of preferred stock

Which of the following is NOT correct?1, Discounted Cash Flow (DCF) method can be used to calculate the cost of preferred stock.

2, The CAPM method can be used for non-dividend paying companies.

3, The Discounted Cash Flow (DCF) method cannot be used for a company that will never give dividends.

4, The CAPM and the Discounted Cash Flow (DCF) methods should produce the same cost of common stock if used on the same company.

5, The CAPM and the Discounted Cash Flow (DCF) calculations are based on two different models.

Which of the following is the most CORRECT about the NPV of a traditional project (one negative, rest positive cash flows)?

1, The lower the discount rate, the lower the NPV.

2, The higher the discount rate, the more volatile the NPV.

3, The higher the discount rate, the higher the NPV.

4, The higher the discount rate, the less volatile the NPV.

5, The higher the discount rate, the lower the NPV.