Question
1- Which of the following is NOT a relevant cash flow for capital budgeting analysis? Group of answer choices The project will result in lost
1- Which of the following is NOT a relevant cash flow for capital budgeting analysis?
Group of answer choices
The project will result in lost sales of $10,000 per year of an existing product.
The project will result in boosted sales of $15,000 per year of an existing product
2- Which of the following is NOT a valid way to determine a project's operating cash flow?
Group of answer choices
Net Income Plus Depreciation
(Sales minus Costs) x (1 minus Tax Rate) + Depreciation x Tax Rate
Bottom Down Approach, which adds depreciation to net income
Taxable Income Plus Depreciation Minus Taxes
The project will result in increased interest expenses of $50,000 per year.
The project requires a plant to be constructed on land that could be sold today for $1 million
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