7. Which of the following cash flows are relevant incremental cash flows for a project that...
7. Which of the following cash flows are relevant incremental cash flows for a project that you are currently considering investing in? A. Research and Development expenditures you have made B. The cost of a marketing survey you conducted to determine demand for the proposed project C. Interest payments on debt used to finance the project D. The tax savings brought about by the project's depreciation expense
Homework Answers
D.the tax saving brought about by the project's depreciation expense.
research and developmnet expenses are sunk costs and not relevant.
cost of a marketing survey to determine demand is also a sunk cost and not relevant.
Depreciation on projects assets will be eligible for deduction for tax purposes and thereby create incremental cash inflows.
Add Answer to:
7. Which of the following cash flows are relevant incremental
cash flows for a project that...
Which of the following factors should be included in the cash flows used to estimate a...
Which of the following factors should be included in the cash flows used to estimate a project's NPV? a. Cannibalization effects, but only if those effects increase the project's projected cash flows. b. Interest on funds borrowed to help finance the project. c. Expenditures to date on research and development related to the project, provided those costs have already been expensed for tax purposes. d. The end-of-project recovery of any working capital required to operate the project. e. All costs...
When firms make capital budgeting decisions, they should concern themselves with incremental cash flows, not net...
When firms make capital budgeting decisions, they should concern themselves with incremental cash flows, not net income, when evaluating projects. To determine the incremental cash flows associated with a capital project, an analyst should include all of the following except: The project's financing costs The project's depreciation expense Changes in net working capital associated with the project The project's fixed-asset expenditures O Indirect cash flows often affect a firm's capital budgeting decisions. However, some of these indirect cash flows are...
3. Identifying incremental cash flows Aa Aa E When firms make capital budgeting decisions, they should...
3. Identifying incremental cash flows Aa Aa E When firms make capital budgeting decisions, they should concern themselves with incremental cash flows, not net income, when evaluating projects. To determine the incremental cash flows associated with a capital project, an analyst should include all of the following except: The project's fixed-asset expenditures Changes in net working capital associated with the project The project's depreciation expense The project's financing costs Indirect cash flows often affect a firm's capital budgeting decisions. However,...
Ch 13: Assignment - Capital Budgeting: Estimating Cash 3. Identifying incremental cash flows When firms make...
Ch 13: Assignment - Capital Budgeting: Estimating Cash 3. Identifying incremental cash flows When firms make capital budgeting decisions, they should concern themselves with incremental cash flows, not net income, when evaluating projects. To determine the incremental cash flows associated with a capital project, an analyst should include all of the following except: The project's depreciation expense The project's fixed-asset expenditures The project's financing costs Changes in net working capital associated with the project Indirect cash flows often affect a...
Manheim Candles is considering a project with the following incremental cash flows. Assume a discount rate...
Manheim Candles is considering a project with the following incremental cash flows. Assume a discount rate of 10%. Year Cash Flow 0 ($20,000) 1 0 2 $30,000 3 $30,000 Calculate the project's MIRR. (Round to the nearest whole percentage.)
Relevant cash flows
Which of the following are cash flows that Turnkey Systems Inc. forgoes as a result of accepting the project under consideration? (In general, these are the cash flows of the next-best alternative to the project.)Opportunity costsIncremental revenuesSunk costsWhich of the following factors should Turnkey Systems Inc. include in its capital budgeting analysis? Check all that apply.Turnkey’s forecasted cash flows are expressed on an after-tax, as opposed to pre-tax, basis.Turnkey’s annual preferred stock dividends will increase from $200,000 to $250,000, due to...
12. You are provided a chart representing the cash flows expected from a coffee shop project...
12. You are provided a chart representing the cash flows expected from a coffee shop project in a fetail store. You remember from vour finance course that only incremental cash flows Should be included in the chart as relevant items for capital budgeting decision. When you examine the chart, you have noted the following points. a. Comment on each as relevant or not and, b. briefly explain why in one or two sentences. (10p) The coffee shop project chart includes...
All of the following are incremental cash flows attributable to the project EXCEPT: Group of answer...
All of the following are incremental cash flows attributable to the project EXCEPT: Group of answer choices substitutionary effects (i.e., cannibalism in the marketing sense).. financing costs. All of these are correct. opportunity costs. changes in net working capital.
Identify and describe two incremental cash flows from a proposed project such as expanding a product...
Identify and describe two incremental cash flows from a proposed project such as expanding a product line or to launching a new product or service.
QUESTION 1 Assume a project has normal cash flows. All else equal, which of the following...
QUESTION 1 Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT? A project's IRR increases as the WACC declines. A project's NPV increases as the WACC declines. A project's MIRR is unaffected by changes in the WACC. A project's regular payback increases as the WACC declines. A project's discounted payback increases as the WACC declines. QUESTION 2 Gul Corp. considers the following capital structure optimal: 40% debt; 50% equity; and 10% preferred...
When firms make capital budgeting decisions, they should concern themselves with incremental cash flows, not net income, when evaluating projects. To determine the incremental cash flows associated with a capital project, an analyst should include all of the following except: The project's financing costs The project's depreciation expense Changes in net working capital associated with the project The project's fixed-asset expenditures O Indirect cash flows often affect a firm's capital budgeting decisions. However, some of these indirect cash flows are...
3. Identifying incremental cash flows Aa Aa E When firms make capital budgeting decisions, they should concern themselves with incremental cash flows, not net income, when evaluating projects. To determine the incremental cash flows associated with a capital project, an analyst should include all of the following except: The project's fixed-asset expenditures Changes in net working capital associated with the project The project's depreciation expense The project's financing costs Indirect cash flows often affect a firm's capital budgeting decisions. However,...
Ch 13: Assignment - Capital Budgeting: Estimating Cash 3. Identifying incremental cash flows When firms make capital budgeting decisions, they should concern themselves with incremental cash flows, not net income, when evaluating projects. To determine the incremental cash flows associated with a capital project, an analyst should include all of the following except: The project's depreciation expense The project's fixed-asset expenditures The project's financing costs Changes in net working capital associated with the project Indirect cash flows often affect a...
12. You are provided a chart representing the cash flows expected from a coffee shop project in a fetail store. You remember from vour finance course that only incremental cash flows Should be included in the chart as relevant items for capital budgeting decision. When you examine the chart, you have noted the following points. a. Comment on each as relevant or not and, b. briefly explain why in one or two sentences. (10p) The coffee shop project chart includes...
Most questions answered within 3 hours.
-
The first stock pays a current dividend of $2 which is growing
at 3% per year....
asked 2 minutes ago -
Assume an array list is declared as follows:
int list[100]
and that all other variables have...
asked 11 minutes ago -
Do you believe that as the pool of engineers decrease, or become
in higher demand, that...
asked 20 minutes ago -
A
700 kg car is coasting along a level road, slowing down at an
acceleration of...
asked 28 minutes ago -
find dB IL for a sound with the intensity of 3x10^-13 w/sq meter
with a reference...
asked 29 minutes ago -
Case 7-3: Wentworth Hospital Discussion Questions: essay
paragraph
Is there anything irregular here?
What is your...
asked 31 minutes ago -
1- A) How many milliliters of 0.100 M NaOH are needed to
neutralize 50.00 mL of...
asked 49 minutes ago -
It is determined that a reaction is 1st order in [BrO3-], 1st
order in [Br-] and...
asked 50 minutes ago -
Write a JavaScript program to implement the Least-Squares Linear
Regression algorithm shown below, for an arbitrary...
asked 1 hour ago -
Determine the solubility of Cadmium in equilibrium with Cadmium
hydroxide, Cd(OH)2, as a function of pH....
asked 1 hour ago -
When 34.2 grams of strontium reacts with excess molecular
oxygen, how many grams of the product...
asked 1 hour ago -
nformation related to the Berkley Company for the calendar year
2015 follows:
Liabilities, December 31, 2015...
asked 1 hour ago