Which of the following factors should be included in the cash flows used to estimate a project's NPV? All costs associated with the project that have been incurred prior to the time the analysis is being conducted. Interest on funds borrowed to help finance the project. The end-of-project recovery of any working capital required to operate the project. Expenditures to date on research and development related to the project provided those costs have already been expensed for tax purposes. Suppose Tapley Corporation uses a WACC of 8% for below-average risk projects, 10% for average-risk projects, and 12% for above-average risk projects. Which of the following independent projects should Tapley accept, assuming that the company uses the NPV method when choosing projects? C A None B The relative risk of a proposed project is best accounted for by which of the following procedures? Ignoring risk because project risk cannot be measured accurately. Picking a risk factor equal to the average discount rate. Adjusting the discount rate downward if the project is judged to have belowaverage risk. Adjusting the discount rate upward if the project is judged to have average risk. Reducing the NPV by 10% for risky projects. Question 40 (1 point) Which of the following is NOT a cash flow and thus should not be reflected in the analysis of a capital budgeting project? Changes in net operating working capital. Cannibalization effects. Sunk costs that have been expensed for tax purposes. Shipping and installation costs. Opportunity costs