Which of the Following Rules Is Correct for Capital Budgeting

question 51

Multiple Choice

Which of the following rules is correct for capital budgeting analysis?

• A) The interest paid on funds borrowed to finance a project must be included in the project's estimated cash flows.
• B) Only incremental cash flows are relevant when making accept/reject decisions.
• C) Sunk costs are not included in the annual cash flows, but they must be deducted from the PV of the project's other costs when reaching the accept/reject decision.
• D) If a product is competitive with some of the firm's other products, this fact should be incorporated into the estimate of the relevant cash flows. However, if the new product is complementary to some of the firm's other products, this will have no effect on the cash flows used in the analysis.

Identify distinguishing characteristics of primates among mammals.

Recognize the basic morphological features and feeding mechanisms of simple aquatic organisms.

Understand the unique aspects of human language and its evolutionary significance.

Describe neoteny and its implications in primate evolution, including humans.

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Definitions:

Iroquois

A historically powerful and influential group of Native American tribes forming the Iroquois Confederacy, primarily located in the northeastern United States.

Fort Necessity

Fort Necessity was a small stockade built by British colonial forces in 1754 in what is now Farmington, Pennsylvania, playing a key role in the early stages of the French and Indian War.

Plan of Union

A proposal made by Benjamin Franklin at the Albany Congress in 1754 for the creation of a unified government for the Thirteen Colonies, which was not implemented but laid groundwork for future unity.

Albany Congress

A meeting of representatives from several American colonies in 1754 to discuss forming a united front against the French and Native American threats.