Which of the Following Factors Should Be Included in the Cash

question 3

Multiple Choice

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

• A) Interest on funds borrowed to help finance the project.
• B) The end-of-project recovery of any working capital required to operate the project.
• C) Cannibalization effects, but only if those effects increase the project's projected cash flows.
• D) Expenditures to date on research and development related to the project, provided those costs have already been expensed for tax purposes.
• E) All costs associated with the project that have been incurred prior to the time the analysis is being conducted.