1. The proper formula of project cash flow is operating cash flow - additions to net working capital - capital spending.

True or False

2. Depreciation causes operating cash flow to differ from net income.

True or False

3. Assume that over the life of project X, net working capital is maintained at an amount equal to the initial investment. If so, net working capital doesn't need to be included in the NPV computation, since the outflow at time zero is exactly (as we generally assume) offset by an equal inflow at the end of the project's life.

True or False