ther to proceed with a proiect, the firm should consider all of the following hich is a "not relevant versus "relevant" cash flow?) 18 When evaluating whether to proceed with a project factors except which one? (i.e., Which is a "not relevan a. Changes in working capital attributable to the project b. previous expenditures associated with a market test to a c. the current market value of any equipment to be sold and a. the resulting difference in depreciation If the proiect involves are e. all of the above should be considered. with a market test to determine the feasibility of the project. ent to be sold and replaced. ne project involves a replacement decision. alysis you realized that the project would require an increase in 19 While doing a capital budgeting analysis you realized that the pres inventory of $8,000. You should a. Ignore the inventory requirement because it is not an operating cas b. Record the $8,000 at time zero as an additional benefit of taking the p c. remember to depreciate the $8,000 over the depreciable life of the project d. record the $8,000 at time zero as an additional cost of taking the project. e. none of the above are accurate. 20 (All else the same.) a stock repurchase may be a signal that a. A firm's stock is overvalued. b. A firm's stock is undervalued c. A firm is short on funds. d. A firm's bonds are overvalued. e, none of the above are accurate. A firm's short ondervalued 21 A primary advantage associated with holding a diversified portfolio of financial assets is the reduction of risk. The relevant (aka important) risk a particular stock would contribute to a well diversified portfolio is the stock's : a. Total risk, as measured by the stock's beta. b. nondiversifiable, aka market risk, as measured by the stock's bota. c. nondiversifiable, aka market risk, as measured by the stock's standard deviation. d. unique risk, as measured by the stock's standard deviation. e. unique risk, as measured by the stock's beta