Which of the Following Statements Is Correct

question 3

Multiple Choice

Which of the following statements is correct?

• A) Incremental net operating profits after-tax should include sunk costs associated with a project.
• B) Incremental net operating profits after-tax should include the effects of financing costs associated with a project.
• C) Incremental net operating profits after-tax should exclude the effects of depreciation costs associated with a project.
• D) Incremental net operating profits after-tax should exclude the effects of financing costs associated with a project.