14) Which of the following is not a cash flow that results from the decision to accept a projet? a. Changes in working capital. b. Shipping and installation costs. c.Sunk costs. d. e. Externalities. unity costs. 15) Depreciation must be considered when evaluating the incremental operating cash flows associated with a capital budgeting project because a. it represents a tax-deductible cash expense. b. the firm has a cash outflow equal to the depreciation expense each year c. although it is a non-cash expense, depreciation has an impact on the taxes paid by the d. e. firm, which is a cash flow. depreciation is a sunk cost. None of the above is correct. 16) The before-tax cost of debt, ra, is the same as the a. b. c. d. e. average yield to maturity (YTM) associated with the firm's bonds. dividend yield associated with the firm's common stock. average coupon rate of the firm's bonds. re if the firm has no preferred stock. the firm's marginal tax rate. 17) The firm's weighted average cost of capital (WACC) is set by the board of directors of the firm because it is the benchmark they use to evaluate upper management. regulated by the Internal Revenue Service (IRS) because tax-deductible debt is included in the computation. determined by the financial markets because investors provide the funds used by firms and these funds have costs, which are the returns demanded by investors. a. b. c. d. the same as the firm's internal rate of return (IRR). e. the total net present value (NPV) of all the capital budgeting projects in which the invests in any year