. Layout References Mailings Review View Help Share Comments 1. A key difference between replacement and expansion project analyses is that with replacement, the incremental cash flows are measured as the net difference between projected cash flows from the current productive assets and cash flows of the proposed new productive assets. True False 2. The weighted average cost of capital increases if the total funds required call for an amount of equity in excess of what can be obtained as retained earnings. True False 3. The post-audit is a simple process in which actual results are compared to forecasted results and any discrepancy indicates a change in factors that are completely under management's control. True / False I 4. Short-term financing might be riskier than long-term financing because, during periods of tight credit, the firm might not be able to rollover (renew) its debt. True / False tigate Focus 650 PM