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Assume that expected costs of financial distress are zero, taxes are zero, investors know as much about firm prospects as do insiders, and you know

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Assume that expected costs of financial distress are zero, taxes are zero, investors know as much about firm prospects as do insiders, and you know that corporate insiders always work to maximize shareholder value. Wa firm has no debt in its capital structure, its weighted average cost of capital will likely go down If the firm issues debt and buys back shares of stock True False GO When you calcuate the cash flows for a project that you are evaluating what should be included in your calculation? Select all that are correct. Money that has already been spent on a marketing survey regardless of whether you do or do not go forward with the project. An anticipated increase in sales of a related product that is likely to be used along with the product produced by your new project. An example might be cell phone cases and cell phones. Acharge for using surplus warehouse space on your firm's property that is empty and unlikely to be used for any other purpose. An increase in inventories necessary to support your new project. The interest expense of a bank loan that is going to be used to finance the increased working capital needed for the project. After-tax salvage value of an old piece of equipment that is going to be replaced if your firm takes on the new project Depreciation for the new equipment that will be purchased if your firm takes on the new project. A portion of your CEO's salary as he or she will have to devote some of their time to overseeing the implementation of the new project

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