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tof finance charges in is the correct Which of the following project evaluation? D ef iennechare shouald be includeod in a projet's net cash fnows
tof finance charges in is the correct Which of the following project evaluation? D ef iennechare shouald be includeod in a projet's net cash fnows and in the inance charges should be included in a project's net cash flows and the discount rate C: Finance charges should be excladed from a project's net cash flows and the discoust rate. D. Statements B and C. correct treatment of inflation in he)? 23: Which of the following statements presents the projoct evaluation (cost of capital is the required rate of return is t A. Estimating cash flows based on constant prices and discounting them by the B. Estmating cash flows without adjustment for anticipated price changes and discounting them by the real cost of capital. nominal cost of capital C: Estimating cash flows based on anticipated price changes and discounting them by the real cost of capital D: All of the above. 24: Which of the following methods should be applied when comparing independent projects with different lives? A: The constant chain of replacement method only B: Either the constant chain of replacement method or the cquivalent annual value method only C: The constant chain of replacement method using the real cost of capital only D: The net present value method is adequate. 25: If it is feasible to undertake a project irrespective of the decision concerning the acceptance of another, the two projects are said to be: B: dependent. C: mutually exclusive. D: None of the above. 26: Sunk costs can be defined as: A: incremental costs. B: opportunity costs C: cost that has already been incurred but is relevant to future decision making. D: cost that has already been incurred and is irrelevant to future decision making
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