The Cash Flow from Projects for a Company Is Computed

question 21

Multiple Choice

The cash flow from projects for a company is computed as the:

• 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 sunk costs, opportunity costs, and erosion costs of the project.
• E)sum of the incremental operating cash flow, capital spending, and net working capital expenses incurred by the project.

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Definitions:

Dopamine

A neurotransmitter important in reward, motivation, and motor control, often linked to pleasure and addiction.

Neurotransmitter

Chemical substances that transmit signals across a synapse from one neuron to another neuron or to a target cell.

Amphetamine

A potent central nervous system stimulant that is used in the treatment of attention deficit hyperactivity disorder (ADHD), narcolepsy, and for weight loss, but can also be abused as a recreational drug.

Tranquilizers

Medications used to reduce tension or anxiety, often by depressing the central nervous system.