Question 9 (1 point)

Which of the following rules is correct for capital budgeting analysis?

Question 9 options:

	The interest paid on funds borrowed to finance a project must be included in the projects estimated cash flows.
	If a product is competitive with some of the firms other products, this fact should be incorporated into the estimate of the relevant cash flows. However, if the new product is complementary to some of the firms other products, this will have no effect on the cash flows used in the analysis.
	Sunk costs are not included in the annual cash flows, but they must be deducted from the PV of the projects other costs when reaching the accept/reject decision.
	Only incremental cash flows are relevant when making accept/reject decisions.