Are Hair follicles located in the epidermis?

Answer 1

No, they are located in the layer beneath the epidermis, called the dermis.

Here's a link to a diagram of the skin layers. In it you will see that the hair follicles are in the dermal layer.

http://en.wikipedia.org/wiki/Image:3DScience_skin_section_labeled.jpg

Answer 2

No.

Epidermis is the outermost layer of the skin. It forms the waterproof, protective wrap over the body's surface and is made up of stratified squamous epithelium with an underlying basal lamina.

Components
It contains no blood vessels, and is nourished by diffusion from the dermis. The main type of cells which make up the epidermis are keratinocytes, melanocytes, Langerhans cells and Merkels cells.

Layers
Epidermis is divided into several layers where cells are formed through mitosis at the innermost layers. They move up the strata changing shape and composition as they differentiate and become filled with keratin. They eventually reach the top layer called stratum corneum and become sloughed off, or desquamated. This process is called keratinization and takes place within weeks. The outermost layer of Epidermis consists of 25 to 30 layers of dead cells.

Sublayers
Epidermis is divided into the following 5 sublayers or strata:

Stratum corneum
Stratum lucidum
Stratum granulosum
Stratum spinosum
Stratum germinativum (also called "stratum basale")