QUESTION 36 A company is analyzing two mutualy axclusive projects, S and L. with the folowing cash ows Project S Project L The company's WACC is g S% What is the RR of the better project? O Project S 1285%. Project 1270% 1,000 870 250 25 25 250 400 84 1000 0 O Projects 11.85: Project L 12.05% O Proiect S 12.70%; Project L 145% QUESTION 37 Which of the tolowing stabements la CORRECT Ths inamal ate of raturm mathod (IRR) s generaly regardud by aca demsics as being the best singfe mothod for ernuing capkal budgatieg projocts O The payback melhod is generaly regarded by acadesics as bsing the best single metiond for evalusting capits budgeting peojects O The diacountod payback method is generaly regarded by academics as being the best single mehond for evaloating captal budgating projects 0 O The net presert value method (NPV) is generaly regerded by academics as baing the best sihgle methond for evaiaing caphal budgeding projcts O The modified ntemal rate of return method (MIRR) sgearaly ragarded by academice as bsing the bost singka sotiond for svaluating capital budgeting projects QUESTION cash Sows ss dscussed in the bust, bacause FCF wlects only apsrating cash tows. which are availabile to service deet lo pay dvidends to stackholidirs and A frm's capitsl structure doss not affect its free fon othet parposas O Faba QUESTION 3 rent assets minus the diterence batwson current abitiss and notes payable b ogial to the cument ratio minus the bities and noes payable & oqual to tha cument ratia minus the quick Net operaing working captal, definad as operating cur