The Cash Flows of a Project Include the

question 31

Multiple Choice

The cash flows of a project include the

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

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Definitions:

Technology Classifications

The systematic categorization of technology types based on characteristics such as function, industry, or application.

James D. Thompson

A scholar known for his contributions to organization theory, especially his work on organizations as systems.

Long-Linked

A description of processes in an organization where tasks and activities are sequentially dependent on each other, creating a chain of production or service delivery.

Research And Development

A set of activities undertaken by businesses or organizations to innovate and introduce new products or services, or to improve existing ones.