B) Ranking conflicts can arise if one relies on IRR instead of NPV when The first cash flow is negative and the remaining cash flows are positive Projects are independent of one another. C) A project has more than one NPV. D) Projects are mutually exclusive. E) The profitability index is greater than one. The cash flows of a new project that come at the expense of a firm's existing projects are: A) Salvage value expenses. B) Net working capital expenses. C) Sunk costs. D) Opportunity costs. E) Erosion costs. 10. Which of the following is NOT considered a relevant, incremental cash flow in capital budgeting analysis? Opportunity costs B) Erosion costs C) Additions to net working capital D) Sunk costs Fixed asset salvage values 11. A sunk cost is: A) the value of an asset currently owned by a firm. B) a cost for which there is no alternative option. C) another name for a fixed cost. D) a cost that has already been incurred and cannot be recouped. E) a form of erosion. 12 The current price of XYZ stock is $40.00. Dividends are expected to grow at 5% indefinitely and the most recent dividend was $1.75. What is the required rate of retum on XYZ stock? A) 7.3% B) 8.7% C) 9.6% D) 10.6% E) 11.2%