Which of the Following Cash Flows Are Incremental Cash Flows

question 82

Multiple Choice

Which of the following cash flows are incremental cash flows that need to be considered when evaluating a capital project?

• A)Interest expenses on the financing of the project.
• B)Sunk costs of engineering study to determine the feasibility of the project.
• C)Opportunity cost of land being used for project that the firm already owns.
• D)Both a and b are correct.
• E)None of the above.

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Definitions:

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