Assuming that a project has a negative NPV (with conventional cash flow stream) it must be true that (Select one):

a. WACC < IRR

b. WACC> IRR

c. WACC < 0.

d. WACC=IRR

With diversification It is possible (Select one):

1. that the risk of the portfolio will be lower than the risk of the least risky investment in the portfolio.

2. that the return of the portfolio will be higher than the return of the most profitable investment in the portfolio.

3. the coefficient of variance of the portfolio will be higher than the coefficient of the variance of the highest risk investment.

4. All of the above is true

Which statement is FALSE7 (In all answer choices we assume that everything else is constant. (Select one) :

1. The free cash now will decrease assuming that the current assets increase more than the current liabilities.

2. Free cash flow will increase if earnings before interest and taxes increase.

3. The free cash flow will increase assuming that the tax rate decreases.

4. The free cash flow will increase assuming that the depreciation is higher than capital expenditure.