16. Which one of the following is the most inappropriate about the basic principle of cash flow estimation in the capital budgeting process? A) The evaluation of the investment proposal relies on incremental cash flows. B) Cash flow is estimated after payment of corporate taxes. C) Interest expense should not be included in the cash outflow. D) Dividends should be included in the cash outflow. 17. The initial cost of a project is 50 billion Korean Won (KRW), and this project is expected to generate (incremental) cash flow of 10 billion KRW at the end of every year for 6 years. At what discount rate is this project should be accepted? A) 5% B) 6% C) 7% D) No answer 18. Which of the following is the investment evaluation method that does not consider the time value of money? A) Net present value (NPV) B) Payback period C) Internal rate of return (IRR) D) Profitability index (PI) 19. A firm purchased a machine worth $1,000. This machine will be fully depreciated over 5 years using the straight-line method. However, it can be sold at $100 in the market after 5 years. If the tax rate is 30%, what are "the annual depreciation expenses of a firm (on this machine)" and "the (after-tax) salvage value after 5 years", respectively? A) $180/$70 B) $180/$100 C) $200/$70 D) $200/$130