Need help with corporate finance homework, questions and answer choices are below!

1.

If the real return on U.S. Treasury bills is 14 percent while the rate of expected inflation is anticipated to be 8 percent, then what should nominal rate of return be? (Round final percentage answer to decimal places.)

14.05%

33.05%

23.12%

None of the above

2.Which of the following should not be included in a schedule of cash flows from operations when evaluating a capital project?

Variable costs.

Depreciation and amortization.

Fixed costs.

Sunk costs.

3. Which of the following statements is correct?

Incremental net operating profits after-tax should include the effects of financing costs associated with a project.

Incremental net operating profits after-tax should exclude the effects of financing costs associated with a project.

Incremental net operating profits after-tax should exclude the effects of depreciation costs associated with a project.

Incremental net operating profits after-tax should include sunk costs associated with a project.

4. General Mills just is undertaking an analysis on a new cereal. The firm realizes that if they come out with a new product it would affect sales of existing products? What is the best course of action for General Mills in this analysis?

Include the allocated costs of the new cereal in the sales of the pre-existing products.

Account for the reduction of sales from existing cereals in the projection of cash flows on the new product.

Treat the reduction of sales from existing cereals as a sunk cost.

Ignore the fact that sales of other products will be affected.