True or False (2.5marks)

1)When evaluating a project in which a firm might invest, the size but not the timing of the cash flows is important.

2)Capital structure determines the level of current assets that is required to maintain the firm's operational level.

3)Determining when a supplier should be paid is a capital structure decision.

4)Determining the amount of money to borrow in order to finance a 10-year project is a capital structure decision.

5)Deciding if a new project should be accepted is a working capital decis ion.