The following statements are about a health plan's capital budgeting process.

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.

A project that has a profitability index of 0.0 has an NPV of zero.

An underlying assumption of capital budgeting is that a health plan should keep its investing decisions separate from its financing decisions.

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.