18. Net working capital, when used to value a corporate project, is defined as all current assets divided by all current liabilities TRUE FALSE 19. Net working capital, when not being used for valuation purposes, is defined as all current assets divided by all current Kabilities. TRUE FALSE 20. If the change in net working capital is a number greater than $0, then current liabilities grew faster than current assets. TRUE FALSE 21. Regarding Discounted Cash Flow analysis: The PV of a future sum decreases as the discount rate increases. b. If a corporate project requires an up-front payment of $100 and the DCF analysis of the future cash flows is worth $50 in today's dollars, the Net Present Value of the project is greater than zero and the company should pursue the opportunity. Using a Discount Rate of 15% means that the company has a cost of Equity Ke) equal to 15%. Forecasting a project's financial results into the future is much more accurate when done through 10 years rather than five. C. d. ANSWER: 22 Which of the following would lower the PV of the investment (circle all that apply)? Using WACC as the Discount Rate instead of the Cost of Equity Ke b. The discount rate increates The liness of the investment's cash flot decreases d Most of the cash flows occus after the fire-rear forecast Most of the cath lots occur in Yeart 6 - 10 and ferrer in Year 1 - 5