Describe the procedure to consider the time value of money that is, the cost of funds used to support the project?

Explain how cash flows are esrimated for captial budgeting. What are sunk costs and opportunity costs, and how should they be handled in identifying the projects relevant cash flows?

Are the engineers responsible for making capital budgeting decisions?

What is the procedure of developing Project Cash Flow Statements?

Define “the stand-alone principle” applying in evaluating projects and discuss the types of cashflows in project evolution.

What are the various costs that must be evaluated in a capital budgetingdecision?

Explain the uses, limitations and merits of the Payback Period compared to Net Present Value in investment appraisal.

The use of natural resources in an economic activity involves setting up a project forharvesting (i.e. extracting) these resources. For the project to be viable, both economic andfinancial indicators - such as net present value (NPV) and internal rate of return (IRR)considering time value of money - are employed. a) Briefly explain the concept of "time value of money".  b) Moreover, explain how you will use NPV and IRR to determine the viability of a project.

The weighted average cost of capital is used to determine whether or not a project should be done.   true false

What is meant by the incremental cost of borrowing additional funds?