PLEASE HELP ME WITH THE FIRST QUESTION. And, for the second question, I think it is average accounting return. Could you please check it is correct?

A firm is considering a project which would increase accounts receivable by 10000 accounts payable by 35000 and inventory by 30000. which of the following is true?

1) Net working capital has decreased.

2) This is a net source of cash.

3) Payments to creditors will slow.

4) Sales will increase.

5) Net working capital has increased.

An investment's average net income divided by its average book value is the:

1) Profitability Index

2) Average Accounting Return

3) Internal Rate of Return

4) Net Present Value

5) Payback Period