Question: 4. The reason why we should consider NWC for the project evaluation is mainly to well-align the difference between the accounting records in the pro-forma

 4. The reason why we should consider NWC for the project

4. The reason why we should consider NWC for the project evaluation is mainly to well-align the difference between the accounting records in the pro-forma income statement (based on Accrual basis) and actual cash flows (based on Realization basis). [ True / False ] 5. In terms of corporate bonds, the cost of debt is stated on the bond, which is "the coupon rate." [ True / False ] 6. A new project appears to have more risk than the firm's current business. Nevertheless, the firm should use the estimated WACC to evaluate this new project. [ True / False]

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