Do you agree or disagree with each of the following statements?

a. Sunk costs, opportunity costs and financing costs should not be included in the estimation of a projects relevant cash flows.

b. Capital budgeting is simple; just divide the investments net income after taxes by the amount of the investment and compare this to the cost of financing the investment. If the return on investment is greater than the cost of financing, accept the project.

c. Capital rationing conflicts with the goal of maximizing the value of the firm.

d. A firm should never reject a project that has a positive NPV and an IRR greater than the weighted average cost of capital.