The Cash Flow from Projects for a Company Is Computed

question 341

Multiple Choice

The cash flow from projects for a company is computed as the:

• A) Net operating cash flow generated by the project, less any sunk costs and erosion costs.
• B) Sum of the incremental operating cash flow and after-tax salvage value of the project.
• C) Net income generated by the project, plus the annual depreciation expense.
• D) Sum of the incremental operating cash flow, capital spending, and net working capital expenses incurred by the project.
• E) Sum of the sunk costs, opportunity costs, and erosion costs of the project.

---

Definitions:

Bronfenbrenner

Refers to Urie Bronfenbrenner, a psychologist known for developing the ecological systems theory to explain how the inherent qualities of a child and the characteristics of the external environment interact to influence how the child will grow and develop.

Ethologists

Scientists who study animal behavior in natural environments, focusing on instinctual or innate behaviors.

Fixed Action Patterns

Innate, pre-programmed responses triggered by specific stimuli, common in animal behavior.

Instinctive Behaviors

Instinctive behaviors are actions or responses that are inherent and automatic in animals or humans, not learned from experience.