In what way is the setup for finding a projects cash flows similar to the projected income statements for a new, single-product firm? In what way would the two statements be different?

Would a projects NPV for a typical firm be higher or lower if the firm used accelerated rather than straight-line depreciation? Explain.

How could the analysis in Figure 11-2 be modified to consider cannibalization, opportunity costs, and sunk costs?

Why do the annual changes in cash flow due to net working capital appear with both negative and positive values in Figure 11-2?