Whenever a Project Has a Negative Impact on an Existing

question 36

Multiple Choice

Whenever a project has a negative impact on an existing project's cash flows, then that effect should:

• A) be ignored.
• B) be ignored if the project is evaluated using the correct cost of capital.
• C) be included as a negative revenue amount on the new project's cash flow analysis.
• D) be included if the impact is limited to noncash expenditures.

---

Definitions:

Type 1 Diabetes

A chronic condition in which the pancreas produces little or no insulin, a hormone needed to allow glucose to enter cells to produce energy.

Insulin Shots

Injections of insulin used by individuals with diabetes to regulate their blood sugar levels.

Healthy Diet

A nutritional regimen that provides all the necessary nutrients in the right amounts and proportions for maintaining health and well-being.

Type 2 Diabetes

A persistent disorder that impacts how the body handles blood glucose, marked by a resistance to insulin.