Which of the Following Factors Should Be Included in the Cash

question 35

Multiple Choice

Which of the following factors should be included in the cash flows used to estimate a project's NPV?

• A) All costs associated with the project that have been incurred prior to the time the analysis is being conducted.
• B) Interest on funds borrowed to help finance the project.
• C) The end-of-project recoof any working capital required to operate the project.
• D) Cannibalization effects, but only if those effects increase the project's projected cash flows.
• E) Expenditures to date on research and development related to the project, provided those costs have already been expensed for tax purposes.

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Definitions:

Psychoanalysis

A therapeutic approach founded by Sigmund Freud, focusing on unconscious processes as they are manifested in a person's present behavior.

Behavior Therapy

Therapy that applies learning principles to the elimination of unwanted behaviors.

Humanistic Therapy

Humanistic Therapy is a therapeutic approach that emphasizes individual potential and stresses the importance of growth and self-actualization.

Cognitive Therapy

Therapy that teaches people new, more adaptive ways of thinking; based on the assumption that thoughts intervene between events and our emotional reactions.