The analysis that is based on the most likely values is called the:

Multiple Choice

a Best-case.

b Base-case.

c Sensitivity case.

d Upper and lower bound case.

e Risk-free case.

Which of the following is the best definition of incremental cash flows?

Multiple Choice

A Those cash flows that have already occurred and will not change whether or not a new project is accepted.

b The changes in the firm's future cash flows that are a direct consequence of accepting a project.

c The cash flows that are foregone when a new project or activity is accepted.

d The total cash flows of a firm from the point at which a project is implemented until the point at which the project ends.

e Any change in the future net income of a firm that results from a new project being implemented.