Question
Should the following incremental cash flows be considered in an NPV calculation? a. A dividend payment that is being partially funded by a particular projects
Should the following incremental cash flows be considered in an NPV calculation?
a. A dividend payment that is being partially funded by a particular projects contribution to net income for that year.
b. The sale of an old machine, that is being replaced by a new machine?
c. Potential rental income forgone from a previously unused building, owned by the firm, that is now being used as part of a new project.
d. The annual depreciation expense on new equipment purchased for a project.
e. The cost of research and development for a new product that is being put into production.
f. New equipment purchased for a project.
g. Working capital expenditures associated with a new project?
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