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1. Cash flows from assets for financial capital budgeting purposes are the same as the Cash Flow Statements developed for accounting records. A) True B)

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1. Cash flows from assets for financial capital budgeting purposes are the same as the Cash Flow Statements developed for accounting records. A) True B) False 2. If the firm is getting ready to change their capital structure in a few months then the weights in the WACC calculation should be A) the current book value weights. B) the future book value weights. C) the current market value weights. D) the future market value weights. 3. Which of the following should not be included in cash flows (CFFA) for capital budgeting projects? A) Opportunity cost B) Interest Expense C) Taxes D) Changes to Net Working Capital E) Side Effects (such as erosion or complementarities) The market value of a building that you own and that you will use for a specific capital budgeting project, is an example of a(n) A) sunk cost. B) opportunity cost. C) erosion cost. D) fixed cost. E) All of the above

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