13. Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. a. The IRR calculation implicitly assumes that cash flows are withdrawn from the business rather than being reinvested in the business. b. The IRR calculation implicitly assumes that all cash flows are reinvested at the project's IRR. c. If a project has normal cash flows and its IRR exceeds its WACC, then the project's NPV must be negative. d. If Project A has a higher IRR than Project B, then Project A must also have a higher NPV. e. If Project A has a higher IRR than Project B, then Project A must have the lower NPV. 14. Other things held constant, if a firm "stretches" (ie, delays paying) its accounts payable, this will shorten its cash conversion cycle (CCC). a. True b. False 15. Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT? a. A project's IRR increases as the WACC declines. b. A project's MIRR is unaffected by changes in the WACC. C. A project's discounted payback decreases as the WACC declines. d. A project's NPV decreases as the WACC declines. e. A project's regular payback increases as the WACC declines. 16. If a firm's projects differ in risk, then one way of handling this problem is to evaluate each project with the appropriate risk-adjusted discount rate. a. True b. False 17. You have the following information for Toyota Motors. What is the firm's cash conversion cycle? Inventory Conversion Period - 41 days Receivables Collection Period = 36 days Payables Deferral Period = 38 days a. 39 b. 38 C. 32 d. 48 e. 33 days days days days days 18. Other things held constant, the lower a firm's target dividend payout ratio, the higher its expected growth rate should be. a. True b. False