Question: 9. A decrease in inventory increases the cash flow of a firm. True/False? 10. A company may deduct the interest paid to debtholders and the

 9. A decrease in inventory increases the cash flow of a

9. A decrease in inventory increases the cash flow of a firm. True/False? 10. A company may deduct the interest paid to debtholders and the dividends paid to shareholders when calculating its taxable income. True/False? 11. A firm that collects $1 million of its receivables to purchase inventories will see its quick ratio fall. True/False? 12. The less frequent the compounding, the lower the future value, other things equal. True /False? 13. If a low-risk company invests in a high-risk project, project cash flows should be discounted at a higher cost of capital than the company cost of capital. True/False

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