need help with 27 and 28

Mage TEAL FON agt i vi u Question 27 (1 point) A company is considering a capital budgeting project of a proposed expansion to its facilities. Which of the following statements is correct? OA) In calculating the project's operating cash flows, the firm should not subtract out financing costs such as interest expense because these costs are already included in the WACC, which is used to discount the project's net cash flows. B) Since depreciation is a non-cash expense, the firm does not need to know the depreciation rate when calculating the operating cash flows. When estimating the project's operating cash flows, it is important to include any sunk costs, but the firm should ignore cash flows from externalities since they are accounted for elsewhere. Question 28 (1 point) Which of the following is discussed in the text as a method for analyzing risk in capital budgeting? A) Sensitivity analysis. B) Risk-adjusted hurdle rate. OC) Monte Carlo simulation. D) Scenario analysis. E) All of the statements above are discussed in the text as methods for analyzing risk in capital budgeting. Previous Page Next Page Page 28 of 39