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The CFO of Cicero plans to calculate a new project's NPV by estimating the reliever cash flows for each yeas the projects life (i.e. the

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The CFO of Cicero plans to calculate a new project's NPV by estimating the reliever cash flows for each yeas the projects life (i.e. the initial investment cost, the cash flows, and the terminal cash flow), then those cash flows at the company's overall WACC. Which one of the following factors should the CFO be to cash flows when estimating the relevant cash flows? a. Effects of the project on other divisions of the firm but only if those effects lower the project's own direct cash flows. b. costs that have been increased relating to the project, but only if those costs were incurred prior to current year. c. All interest expenses on debt used to help finance the project. d. The investment in working capital required to operate the project even if that investment will be recovered at the end of the projects life. e. All sink costs that have been incurred relating to the project

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