5. The internal rate of return of a project a. Changes when the cost of capital changes O b. Is equal to the annual net cash flows divided by one half of the project's cost when the cash flows are an annuity c. Must exceed the weighted average cost of capital for the firm to accept the project Od. Is interpreted as the required return on the project. e. Both cand d are correct. 6. Which of the following is false? O a. If a firm's projects differ in risk, then one way of handling this problem is to evaluate each project with the appropriate risk-adjusted discount rate, b. All incremental cash flows should be considered when making accept/reject decisions for capital budgeting projects. c. Investments in net operating working capital should not be considered in a capital budgeting cash flow analysis because capital budgeting relates to fixed assets, not working capital. O d. If an investment project would make use of land which the firm currently owns, the project should be charged with the opportunity cost of the land