When Evaluating a New Project,the Firm Should Consider All of the Following

question 88

Multiple Choice

When evaluating a new project,the firm should consider all of the following factors except:

• A) Changes in working capital attributable to the project.
• B) Previous expenditures associated with a market test to determine the feasibility of the project,if the expenditures have been expensed for tax purposes.
• C) The current market value of any equipment to be replaced.
• D) The resulting difference in depreciation expense if the project involves replacement.
• E) All of the above should be considered.