1) Which of the following statements is correct?

- Incremental net operating profits after-tax should include sunk costs associated with a project.

- Incremental net operating profits after-tax should include the effects of financing costs associated with a

project.

- Incremental net operating profits after-tax should exclude the effects of depreciation costs associated with a

project.

- Incremental net operating profits after-tax should exclude the effects of financing costs associated with a

project.

2) which of the following is the most common reason that M&A is often failed to meet expectations?

- Overpayment

- Form of payment

- Large size of target firm

- Inadequate post-merger due diligence

- Poor post-merger communication

3) In order for a project to generate a positive net working capital cash flow at the end of its useful

life, the project:

- must have generated a cumulative negative cash flow during the life of the project.

- must have generated a cumulative positive cash flow during the life of the project.

- must have generated a cumulative negative cash flow at the conclusion of the project.

- could not have generated a positive cash flow at the opening of the project.