Which Factor Should Be Included in the Cash Flows Used

question 62

Multiple Choice

Which factor should be included in the cash flows used to estimate a project's NPV?

• A)all overhead costs incurred
• B)interest on funds borrowed to help finance the project
• C)the end-of-project recovery of any working capital required to operate the project
• D)cannibalization effects, but only if those effects increase the project's projected cash flows

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