Incorporating flotation costs into the analysis of a project will : a. increase the initial cash outflow of the project b. cause the project to be improperly evaluated c. increase the net present value of the project d. increase the project's rate of return

Incorporating flotation costs into the analysis of a project will : a. increase the initial cash outflow of the project b. cause the project to be improperly evaluated c. increase the net present value of the project d. increase the project's rate of return

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Incorporating flotation costs into the analysis of a project will :

a. increase the initial cash outflow of the project

b. cause the project to be improperly evaluated

c. increase the net present value of the project

d. increase the project's rate of return

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