For each statement state whether it is true or false and provide short explanations or comments: 1. Reject projects with a NPV of zero, as such projects do not earn any return.
2. When faced with a set of alternatives, choose the one with the highest NPV.
3. Accept those projects with a positive NPV, as accepting them is equivalent to receiving their NPV in cash at the end of the projects and increases the value of the company in the future.
4. Reject those projects with a negative NPV.

The stock of grommet corporation, a u.s. company, is publicly traded, with no single shareholder owning more than 5 percent of its outstanding stock. grommet owns 95 percent of the outstanding stock of staple inc., also a u.s. company. staple owns 100 percent of the outstanding stock of clip corporation, a canadian company. grommet and clip each own 50 percent of the outstanding stock of fastener inc., a u.s. company. grommet and staple each own 50 percent of the outstanding stock of binder corporation, a u.s. company. which of these corporations form an affiliated group eligible to file a consolidated tax return?