Limited liability for firm debt. IL Ability to raise capital. III Unlimited firmlife IV. Double taxation 3. An Increase in Net Working Capital is treated as a source of cash (select the appropriate answer A. True B. False 4. The executives of a coffee and beverage chain are considering investing in a new line of high volume espresso machines. The machines are texpected to allow faster processing of customer orders and increase sales volume. They also require slightly higher grade coffee beans and more experienced operators of the machines, so that investing in the technology would also raise the cost of goods sold as well as selline and administrative expenses A highly caffeinated divisional executive of the chain calls you and suggests that he has aiready worked out the NPV of the project. He says that he discounted 2020-2025 forecasts for accounting net income that would result from the project and that this value was highly positive. Thenfor, ne sees no reason to hesitate in proceeding with the project. Is his reasoning correct