1. Which is not one of our guidelines for measuring cash flows for capital budgeting?

• Include replacement costs.

• Take into account external effects

• Dont include financing costs.

• Be sure to include fixed costs.

2. On the statement of cash flows, cash generated by selling your product would come under

• Investing activities

• Sales activities

• Financing activities

• Operating activities

3. If you are expressing all cash flows in current dollars, you use the ______ to discount future cash flows.

• The real interest rate

• The nominal interest rate

• The corrected interest rate

• The IRR interest rate

4. On the statement of cash flows, cash generated from selling a factory would come under: