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%. d. Forecasting a project's financial results into the future is much more accurate when done through 10 years rather than five. ANSWER: 22 a. 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 increases. The riskiness of the investment's cash flows decreases d Most of the cash flows occur after the five-year forecast. [ost of the cash flows occur in Years 6 - 10 and fewer in Years 1 - 5. c. e