A paper manufacturer has built a plant that meets all government-mandated environmental regulations, but the plant still produces an unpleasant odor when it is being operated. Many residents in the area dislike the paper mill because of these unpleasant odors. This is an example of _________ externality.

A. an environmental B. a positive within-firm C. a negative within-firm

Please choose either A,B,C or D, and the other correct answer above. Thank you for helping me with these questions

Depreciation is a tax-deductible expense but is not a cash outlay. The total number of units sold will be different for accounting income and cash flow. Which of the following best describes incremental cash flows? Incremental cash flows are not relevant because they will occur whether or not the project is accepted. They are the difference between the cash flows the firm will have if it accepts the project versus the cash flows it will have if it rejects the project. Understanding the nature of projects Capital budgeting analysis often involves decisions related to expansion projects and/or replacement projects. Based on your understanding of expansion and replacement projects, complete the following: A. rental car company bought a new fleet of midsize cars and sold off its old midsize cars because they had too many miles on them. Which type of project would this be considered? A replacement project An expansion project What are sunk costs? Newcastle Coal Co. owns a warehouse that it is not currently using. It could sell the warehouse for $300,000 or use the warehouse in a new project. Should Newcastle Coal Co. include the value of the warehouse as part of the initial investment in the new project or treat the value of the warehouse as a sunk cost? No, treat the value of the warehouse as a sunk cost. Yes, include the value of the warehouse as part of the initial investment in the new project. The role of externalities Depreciation is a tax-deductible expense but is not a cash outlay. The total number of units sold will be different for accounting income and cash flow. Which of the following best describes incremental cash flows? Incremental cash flows are not relevant because they will occur whether or not the project is accepted. They are the difference between the cash flows the firm will have if it accepts the project versus the cash flows it will have if it rejects the project. Understanding the nature of projects Capital budgeting analysis often involves decisions related to expansion projects and/or replacement projects. Based on your understanding of expansion and replacement projects, complete the following: A. rental car company bought a new fleet of midsize cars and sold off its old midsize cars because they had too many miles on them. Which type of project would this be considered? A replacement project An expansion project What are sunk costs? Newcastle Coal Co. owns a warehouse that it is not currently using. It could sell the warehouse for $300,000 or use the warehouse in a new project. Should Newcastle Coal Co. include the value of the warehouse as part of the initial investment in the new project or treat the value of the warehouse as a sunk cost? No, treat the value of the warehouse as a sunk cost. Yes, include the value of the warehouse as part of the initial investment in the new project. The role of externalities