Which of the following statements about synergies impact on incremental cash flows is most correct?

• synergies increase incremental variable costs
• synergies decrease incremental taxes
• synergies decrease incremental fixed costs
• synergies decrease incremental sales

Which of the following incremental cash flows does not occur in the last period of the project?

• the after tax salvage value
• changes in net working capital
• sunk costs
• operating cash flows

All else equal, which of the following regarding the MACRS versus straight-line method is least correct?

• MACRS often has a positive book value at the end of the project
• MACRS will have higher depreciation expenses at the beginning of the project
• MACRS will have higher operating cash flows at the beginning of the project
• MACRS is required by GAAP