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Incremental after-tax cash flows

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1. "When evaluating projects, we're only concerned with the relevant incremental after-tax cash flows. Therefore, because depreciation is a non-cash expense, we should ignore its effects when evaluating projects." Critically evaluate this statement.

2. If a portfolio has a positive investment in every asset, can the standard deviation on the portfolio be less than that on every asset in the portfolio? What about the portfolio beta?

Reference no: EM133110263

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