9.3 c. Demolition costs are incremental cash outflows. d. The cost of the access road is sunk...
Question:
9.3
c. Demolition costs are incremental cash outflows.
d. The cost of the access road is sunk and not incremental.
e. Lost cash flows from other projects are incremental cash outflows.
f. Depreciation is not a cash expense and should not be included, except as it affects taxes. (Taxes are discussed later in this chapter.) Actual health costs will be increasing at about 7% a year.
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780073382302
6th Edition
Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus
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