Bank id 269435 type multiple choice correct which of

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QUESTION:12[QUESTION BANK ID:269435]TYPE:MULTIPLE CHOICECORRECTWhich of the following factors should be included in the cash flows used to estimate a project’s NPV?  << HIDE ANSWERSAAll costs associated with the project that have been incurred prior to the time the analysis is being conductedBInterest on funds borrowed to help finance the projectCThe end-of-project recovery of any working capital required to operate the projectDCannibalization effects, but only if those effects increase the project’s projected cash flowsEExpenditures to date on research and development related to the project, provided those costs have already been expensed for tax purposes
QUESTION:13[QUESTION BANK ID:269599]TYPE:MULTIPLE CHOICECORRECTBankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be so large that it would have to issue new common stock. Since new stock has a higher cost than retained earnings, Bankston would like to avoid issuing new stock. Which of the following actions would reduce its need to issue new common stock?  << HIDE ANSWERSA
QUESTION:14[QUESTION BANK ID:269450]TYPE:MULTIPLE CHOICECORRECTThe "trade-off theory" of capital structure suggests that<< HIDE ANSWERSA
QUESTION:15[QUESTION BANK ID:269414]TYPE:MULTIPLE CHOICECORRECTWhich of the following statements is correct?  << HIDE ANSWERSA

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