1.If a project is financed with common stock, dividend payments should be _____ the calculation of free cash flows of the project.

A) Excluded from

B) included in

2. Taxes paid on salvaged assets, tax rate x (Salvage value - Book value), ______ if the tax rate increases.

A) do not change

B) decrease

C) increase

3. The higher the depreciation, the _____ the future free cash flows of a project.

A) lower

B) higher

4.