Which of the following is true regarding project evaluation?

Multiple Choice

• The stand-alone principle calls for evaluation of a project based on its incremental cash flows.

• When fixed assets are sold at the project end, there are usually no tax consequences of the sale.

• Whether straight-line depreciation or CCA is used will have no impact on project NPV.

• Financing costs must be included in the statement of cash flows because they are not accounted for elsewhere.

• Changes in NWC are not considered incremental cash flows.