Incremental cash flow, Which of the following is an

Incremental cash flow

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Reference no: EM131932666

1. Which of the following is an incremental cash flow?

a. Market research costs

b. Change in working capital

c. Sunk costs

d. Project site analysis cost

e. Externalities

2. The capital budgeting director of Sparrow Nursing Home is evaluating a project which costs $200,000, is expected to last for 10 years and produce net cash flows of $44,503 per year. If the firm's cost of capital is 14 percent, what is the project's IRR?

14%

18%

15%

Reference no: EM131932666

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