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:

Intrinsic Motivation

A drive or reason to pursue a goal, which comes from inside a person, such as the joy of reading a good book.

Secondary Education

The stage of education following primary education, typically including high school and preparatory schooling.

High School Graduates

Individuals who have completed the necessary coursework and requirements to graduate from a secondary education institution.

Abstractly

Refers to thinking or understanding a concept in a way that is not concrete or specific, focusing on ideas rather than physical examples.