Incorporating Flotation Costs into the Analysis of a Project Will

question 64

Multiple Choice

Incorporating flotation costs into the analysis of a project will:

• A) cause the project to be improperly evaluated.
• B) increase the net present value of the project.
• C) increase the project's rate of return.
• D) increase the initial cash outflow of the project.
• E) have no effect on the present value of the project.

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Definitions:

Observational Learning

Learning that occurs through observing the behavior of others and the outcomes of those behaviors.

Conditioned Response

A learned response to a previously neutral stimulus that becomes conditioned after being associated with an unconditioned stimulus.

Unconditioned Stimulus

Within classical conditioning, a stimulus that inherently and automatically elicits a response without any previous training.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any previous conditioning or learning.