1.A cost that occurred in the past and is always to be excluded from discounted cash flow analysis is called:

Multiple Choice

• An Opportunity Cost

• A Sunk Cost

• Operating Cash Flow

• A Spillover or Side Effect Cost

• 2.The three main types of Cash Flow used in Discointed Cash Flow Analysis (as presented in class) are:

• Multiple Choice

• Operating Cash Flow, Taxes, and Salvage Value

• Operating Cash Flow, Initial Investments, and Net Present Value

• Initial Investment, Net Working Capital, and Depreciation

• Initial Investment, Net Working Capital, and Operating Cash Flow

• Initial Investment, Terminal Value, and Operating Cash Flow