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.
b
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Which of the following would not be found on an Income Statement of a service organization?
A) selling expenses B) gross margin C) operating income D) all of these can be found on the Income Statement of a service organization.
In order to reflect the greater risk to the lender, secured loans are priced at a higher rate than unsecured loans
a. True b. False Indicate whether the statement is true or false
On the pro forma INCOME STATEMENT, "property and equipment" should include any change in management's anticipated capital expenditures
Indicate whether the statement is true or false
Internal recruitment boosts employee morale by:
A. bringing fresh thinking and energy into the firm. B. reinforcing the value of experience within the firm. C. offering employees a cash bonus for referring people to the firm. D. measuring aptitudes that relate directly to the job itself.