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When deciding if a project should be undertaken,

financial managers should focus

ON

INCREMENTAL CASH FLOWS ONLY (PAYMENTS AND RECEIPTS)

such as the initial

cash investment and not worry about net book values

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If you have to decide BETWEEN TWO MUTUALLY EXCLUSIVE PROJECTS

,

you should know that the project which has the

HIGHEST IRR, necessarily also shows the HIGHEST NPV.

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In project evaluation, you have to be

consistent: if

INFLATION

is included

in the discount rate, then your estimated cash flows must include inflation.

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In project evaluation, you have to be

consistent: if

THE COST OF FINANCING THE

PROJECT

is included in the discount rate, then your estimated cash flows

must include the cash payments of interest corresponding to the

LOAN FINANCING the project.

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In order to financially assess a

project, you should

discount Free Cash

Flows before tax

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Which statement is true? In order to assess a project,

you have to discount free cash flow after tax and the

tax is calculated:

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If

A

BUILDING

used in a project was purchased some time ago and if the CURRENT MARKET VALUE IS HIGHER

than the

cost when bought, the initial investment, which appears as a cash outflow in

the NPV calculation should be:

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Визначити і підкреслити, скільки (мінімальна кількість у 16-ковій системі числення) контрольних розрядів повинен містити код Хеммінга, який виправляє 1 помилку, якщо кількість інформаційних біт у повідомленні дорівнює 213
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A company is planning to build a new plant to replace

an older one that is to be demolished. The alternatives are: continue to

operate the old plant or demolish the old plant and build a new one on the land

where the old one used to be. Which of the following flows to consider in the NPV

calculation of the project where we build a new plant? Select only one answer.

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