Determination of project cash flows

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Reference no: EM131556011

1. As a noncash expense, depreciation is irrelevant in the determination of a project's cash flows.

True or False.

2. An average-risk project that has an NPV of zero when its cash flows are discounted at the weighted-average cost of capital will provide sufficient returns to satisfy both stockholders and bondholders.

True or False.

Reference no: EM131556011

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