Which of the Following Factors Should Be Included in the Cash

question 55

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 recovery of any additional net operating 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:

Pathology Present

The existence of disease or disease processes as identified by studying bodily tissues and fluids.

Muscular

Relating to or affecting the muscles of the body.

Sternocleidomastoid

A major muscle in the neck that runs from the sternum and clavicle to the mastoid process of the temporal bone and is involved in head rotation and flexion.

Trapezius

The large muscle of the back and neck.