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Which of the following cashflows is/are considered to be a relevant when appraising new projects using net present value (NPV)? (1) The interest costs associated
Which of the following cashflows is/are considered to be a relevant when appraising new projects using net present value (NPV)?
(1) The interest costs associated with any borrowings made to finance the investment in the project
(2) Costs incurred in collecting information in order to appraise the project
(3) Any future release of working capital when the project is finished
A. All cashflows are relevant
B. Cashflow (3) is relevant
C. Cashflow (1) is relevant
D. Cashflows (1) and (2) are relevant
E. Cashflows (2) and (3) are relevant
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