Question: 6) Are the following statement True or False? Please explain why. Statement A: The more difficult it is to estimate a firm's cash flow

6) Are the following statement True or False? Please explain why.

Statement A: "The more difficult it is to estimate a firm's cash flow needs, the greater the need to carry higher precautionary balances."

Statement B: "If a company accepts only projects that meet or exceed its weighted average cost of capital, that company will consistently be creating shareholder value."

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