Chapter 12 - d. All of the above B - Correct A potential...

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Sheet1 Page 1 B - Correct If a company would still have a cash flow item even if they rejected potential new Project A, should this particular cash flow ite m a. Yes b. No c. Maybe, it depends on the situation D - Correct In the cash flow information for the Ping Kings project, Ping spent $300,000 for research and development of the golf clubs. P n a. $300,000 b. $180,000 c. $120,000 d. $0 D - Correct Which of the following should be used in determining a potential project's operating cash flow? a. Incremental revenue b. Depreciation on new equipment purchased for the project c. Incremental expenses
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Unformatted text preview: d. All of the above B - Correct A potential new project has an expected salvage value of $200,000 and an expected book value of $120,000 at the end of its 5 a. $0 b. $32,000 c. $48,000 d. $80,000 c - Correct Which of the following should be excluded from the cash flow analysis for a potential project? a. Externalities b. Opportunity Costs c. Interest expense d. Cannibalization effects D - Correct How many years should be used to find the extended net present value for two repeatable mutually exclusive projects with a 3 a. 3 b. 4 c. 6 d. 12...
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