Opportunit costs have no impact on project incremental CFs.

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Reference no: EM132059075

True or False? (please take your time)

a) Opportunit costs have no impact on a project’s incremental CFs.

b) Use of a firm’s existing assets in a proposed project would result in an erosion cost.

c) Working capital accounts typically go up at the beginning of a project and are then decreased later.

d) Temple’s payment of $1M to an architectural firm for a feasibility study of a new football stadium is an example of a sunk cost.

e) Straight-line depreciation is higher in the later years of a project’s life.

f) The market value of a long-term asset at any point in time is equal to the? asset’s original cost plus all of the depreciation that has been taken on that asset.

g) Sale of a piece of equipment at a gain reduces the CF from salvage.

Reference no: EM132059075

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