Which of the Following Factors Should Be Included in the Cash

question 32

Multiple Choice

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

• A) all overhead costs incurred
• B) interest on funds borrowed to help finance the project
• C) the end-of-project recovery of any working capital required to operate the project
• D) cannibalization effects, but only if those effects increase the project's projected cash flows

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Definitions:

Federal Tax Revenues

Money collected by the government from taxes imposed on individuals and businesses that is used to fund public services and programs.

Deadweight Loss

The reduction in economic efficiency that happens when a good or service does not reach or cannot reach its equilibrium.

Efficient Tax System

A tax system that collects required revenue without excessive government borrowing, and does so in a way that does not impede economic growth.

Tax Revenues

The income that is received by the government from taxpayers, including individuals and businesses, to fund public expenditures.