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B. True or False  When evaluating a project in which a firm might invest, the size but not the timing of the cash flows is important. Capital structure determines the level of current assets that is required to maintain the firm's operational level. Determining when a supplier should be paid is a capital structure decision. Determining the amount of money to borrow in order to finance a 10-year project is a capital structure decision. Deciding if a new project should be accepted is a working capital decision.

B. True or False  When evaluating a project in which a firm might invest, the size but not the timing of the cash flows is important. Capital structure determines the level of current assets that is required to maintain the firm's operational level. Determining when a supplier should be paid is a capital structure decision. Determining the amount of money to borrow in order to finance a 10-year project is a capital structure decision. Deciding if a new project should be accepted is a working capital decision.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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B. True or False 

  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 decision.
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