1. All else equal, when a firm undertakes riskier projects, it causes a wealth transfer

a.from management to stockholders

b.from management to bondholders

c.from stockholders to management

d.from bondholders to stockholders

e.from stockholders to bondholders

f.from bondholders to management

. 2.Depreciation is not a true cash cost but a true economic cost. As such it is reflected on EVA's calculation.

True

False