1. selecting investments projects to according to rules based either on project NPV or IRR results in maximizing firm value? a. true b. false 2.a company can shorten its cash cycle by - a. reducing inventory turnover b.reducing account payables c.reducing days receivable d. none of the above 3. for which of the following generic businesses would you expect a combination of high asset turnover and low profit margins? a. supermarkets b. banks c. airlines d. software developers 4. for a levered firm , EBIT is equivalent to- a. net income b.proforma earnings c.operating profits d.net income before taxes 5.which of the following ratios uses sales in the denominator? a.days in inventory b. receivables turnover c. cash ratio d. average collection period 6. It is possible for a company to grow faster than its sustainable growth rate? a.true b.false 7. leverage and liquidity generally rise or fall together . a. true b. false