Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. O a. If a project's NPV is less than zero, then its IRR must be greater than the WACC b. The lower the WACC used to calculate it, the higher the calculated NPV will be. O C. NPV of a relatively low-risk project should be found using a relatively high WACC O d. If a project's NPV is greater than zero, then its IRR must be less than WACC Which of the following statements is CORRECT? a. If an asset is sold for less than its book value at the end of a project's life, it will generate a loss for the firm, hence its terminal cash flow will be negative. O b. If equipment is expected to be sold for more than its book value at the end of a project's life, this will result in a profit. In this case, despite taxes on the profit, its terminal cash flow will be positive. O c. Only incremental cash flows are relevant in project analysis, the proper incremental cash flows are the reported accounting profits, and thus reported accounting income should be used as the basis for investor and managerial decisions. O d. It is unrealistic to believe that any increases in net operating working capital required at the start of an expansion project can be recovered at the project's completion. Operating working capital like inventory is almost always used up in operations. Thus, cash flows associated with operating working capital should be included only at the start of a project's life. Which of the following statements is NOT CORRECT? a. The IRR method assumes that the cash flows to be received from a project are to be reinvested at the WACC b. The IRR method takes into account the time value of money c. The IRR method values a dollar received today greater than a dollar that will be received until sometime in the future Od. The IRR method takes into account the cash flows over a projects full life