22 Which of the following statements is CORRECT? wered out of a question Select one a. One defect of the IRR method is that it values a dollar received today the same as a dollar that will not be received until yonetine i b. One defect of the IRR method is that it assumes that the cash flows to be received from a project can be reinvested at the IRR itself often not valid One defect of the IRR method is that it does not take account of the time value of money d. One defect of the IRR method is that it does not take account of cash flows over a project's full life e One defect of the IRR method is that it does not take account of the cost of capital 23 Which of the following statements is NOT CORRECT? of estion Select one: a. Bank loans generally carry a higher interest rate than commercial paper. b. Accruals are "free" in the sense that no explicit interest is paid on these funds c. The risk to a firm that borrows with short-term credit is usually greater than if it borrowed using long-term debt. This added variability of interest costs on short-term debt and possible difficulties with rolling over short-term debt. d. Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate, e. A conservative approach to working capital management will result in most if not all permanent assets being financed with