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1. Which of the following would be considered an incremental cash flow? I. You hire ABC Consulting to prepare a report on the pros and

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1. Which of the following would be considered an "incremental" cash flow? I. You hire ABC Consulting to prepare a report on the pros and cons of expanding internationally. II. If you do expand internationally, you will use an existing plant. The existing plant is currently not in use but could be sold on the market for $125,000. III. You believe that by expanding internationally, you will boost sales in your online division. a. I only b. I and II only c. III only d. II and III only e. All of the above 2. Which of the following is not part of the capital budgeting process? a. Arrangement for sales of the firm's stocks and bonds for project funding. b. Generation of ideas for capital investments. c. Estimation of project cash flow. d. Selection of projects expected to increase firm value. e. Monitoring accepted projects for variance from expectations

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