Reference no: EM132663638

Problem 1: If we can pinpoint the cash costs and cash inflows to a company that will result from a project, these could be called "direct inflows and outflows," and the net difference is the direct net cash flow. Other costs and benefits that do not flow from or to the firm, but to other parties, are called externalities, and they need not be considered as a part of the capital budgeting analysis.

a. True

b. False

c. None of the above

d. Need additional information to answer the question

Problem 2: The following is a noncash deduction?

a. Rent YES

b. Salaries

c. Interest

d. Depreciation

e. Automobile maintenance expense