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Question 10 4 pts The relevant cash flows that are included in the evaluation of any capital budgeting project are only those incremental cash flows
Question 10 4 pts The relevant cash flows that are included in the evaluation of any capital budgeting project are only those incremental cash flows affected by the decision to proceed with the project. If a cash flow does not change as a result of the decision to proceed with the project invest in it), it is not relevant to the analysis and decision (NPV and IRR analysis). Which of the following incremental cash flows should be included in our evaluation of the projects NPV? A. Initial investment outlay (e.g., purchase price of the equipment) B. Any installation costs associated with the project with C. Sunk costs (e.g. the cash already paid to a consultant to evaluate the environmental impact of the project. D. Opportunity costs (e.g., the value of land that company already owns but that would be used for the project if approved) E. Supplemental operating cash flows including any incremental working capital required by the project F. Answers A, B and E. G. Answers A, B, D and E. O H. All of the above
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