1. Given the following statement, please indicate whether it is true or false, and why: "Sunk should be included as relevant in computing a project's incremental cash flows." (Limit your answer to less than 100 words)
2. Given the following statement, please indicate whether it is true or false, and why: "An increase in the average payment period will result in an increase in the operating cycle and in the cash conversion cycle." (Limit your answer to less than 100 words.)