When Evaluating a New Project,which Statement Should Firms NOT Include

question 50

Multiple Choice

When evaluating a new project,which statement should firms NOT include in the projected cash flows?

• A)previous expenditures associated with a market test to determine the feasibility of the project provided those costs have been expensed for tax purposes
• B)the value of a building owned by the firm that will be used for this project
• C)a decline in the sales of an existing product provided that decline is directly attributable to this project
• D)the salvage value of assets used for the project at the end of the project's life

---

Definitions:

Bank Reconciliation

The process of comparing and contrasting the bank statement with a company's financial records to identify any discrepancies.

Bank Service Charges

Fees charged by banks for various services such as account maintenance, transactions, or overdrafts.

Deposit In Transit

Money that has been received and recorded by a company but has not yet been reflected in the bank's records.

NSF Check

A check that cannot be honored because the account on which it is drawn lacks sufficient funds, standing for "non-sufficient funds."