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:

Forgery

The fraudulent making or altering of a writing in a way that changes the legal rights and liabilities of another and with the intent to deceive or defraud.

Legal Document

A formal document that is legally enforceable or that can serve as evidence in a legal proceeding.

Intestate

The state of dying without a will.

Surviving Spouse

A surviving spouse is the husband or wife left alive after the other has passed away.