The Cash flOw from Projects for a Company Is

question 135

Multiple Choice

The cash flow from projects for a company is:

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

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Definitions:

2 × 2 Factorial Design

An experimental design involving two independent variables, each at two levels, exploring their effect individually and interactively.

Simple Main Effect of Gender

The isolated impact of gender on a dependent variable within a factorial study design, disregarding the influence of other interacting factors.

Interactions

In research, refers to the way different variables influence each other, often modifying the effects of one variable on another.

Simple Main Effect of Age

The specific impact of age on a dependent variable in a study that involves multiple independent variables, analyzed at levels of other interacting factors.