A Project's Cash flOws Might Consist Of

question 40

Multiple Choice

A project's cash flows might consist of:

• A)net operating cash flow generated by the project, less any sunk costs and erosion costs.
• B)sum of the incremental operating cash flow and after-tax salvage value of the project.
• C)net income generated by the project, plus the annual depreciation expense.
• D)sum of the incremental operating cash flow, capital spending, and net working capital
• Expenses incurred by the project.
• E)sum of the sunk costs, opportunity costs, and erosion costs of the project.

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Definitions:

Effective Leader

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