A firm that only accepts projects for which the IRR is equal to the firm's required return will, on average, destroy wealth for its shareholders. Select one: True False

Direct bankruptcy costs are those costs that are directly associated with bankruptcy, such as legal and administrative costs.

Select one:

True

False

A new project will cause accounts payable to increase by $35,000, accounts receivable to increase by $30,000 and inventory to increase by $5,000. Which one of the following statements is true?

Select one:

a. The change in inventory is a use of cash.

b. The project will not affect net working capital.

c. Net working capital will decrease.

d. Net working capital will increase.

e. The change in accounts payable is a use of cash.