23. The operating cash flow of a cost cutting project: A. is equal to zero because there are no incremental sales. B. can only be analyzed by projecting the sales and costs for a firm's entire operations C. can be positive even though there are no increased sales. D. is equal to the depreciation tax shield. 24. Which one of the following will increase an optimal bidding price of a project? A. a decrease in the fixed costs B. a reduction in the net working capital requirement C. a reduction in the firm's tax rate D. an increase in the required rate of return E, an increase in the salvage value 25. Phone Home, Inc. is considering a new 4-year expansion project that requires an initial fixed asset investment of $3 million. The fixed asset will be depreciated straight-line to zero over its 4- year life, after which time it will have a market value of $231,000. The project requires an initial investment in net working capital of $330,000. The project is estimated to generate $2,640,000 in annual sales, with annual costs of $1,056,000. The tax rate is 35 percent and the required return for the project is 20 percent. What is the net present value for this project? A. $87,314 B. $174,047 C. $246,458 D. $285,448 E. None of the above