Which of the following cash flows are added to the present value of operating cash flows to make a cost-cutting decision? More than one answer may be correct. Multiple select question. The present value of net working capital recovered at the end of the project The present value of net working capital invested The present value of depreciation tax shields The present value of initial investment

Which of the following is NOTa relevant cash flow and thus should not be reflected in the analysis of a capital budgeting project? a. Shipping and installation costs. b. Cannibalization effects. c. Opportunity costs. d. Sunk costs that have been expensed for tax purposes. e. Changes in net working capital.   Please explain your answer for better understanding.

Which methods of evaluating a capital investment project ignore the time value of money? Multiple Choice Net present volue and accounting rate of retum, Accounting rate of return and internal rate of return. Internal rate of return and payback perlod.

The operating cash flows of a project:   includes tax.   none of the others is correct   are equal to the project's total projected net income.   decrease when net working capital increases.   are unaffected by the depreciation method selected.

Discussion:Is the added precision from including taxes and depreciation in calculating project cash flows worth the effort? Should they be included in the calculations? Please discuss and justify your answer.

In computing the present value of an investment in equipment, the present value of the residual value should be added to the cash inflows Group of answer choices False True

1) When converting accounting profits to cash flows, we broadly deal with depreciation and working capital as follows:   Depreciation               Working capital       A) add add at the start of the project,deduct at the end.       B) deduct add at the start of the project,deduct at the end. C) add deduct at the start of the project,add at the end. D) deduct deduct at the start of the project,add at the end.

11) The cost of a resource that may be relevant to an investment decision even when no cash changes hand is called a(n) sunk cost. B) opportunity cost. C) depreciation cost. D) average cost.

1.True or flase . Even thugh thr amounts and timing of the cash flow may differ, the appropiate LCM rate makes equal in economic sense.  2. true or false. when only costs are involed. The AE method is called the project equivalent cost?  3. true or false. the cost fro a depreciable asset is the invoice cost fot he asset

How can we determine after-tax cash flows for an investmenta project with only operating and investment activities?