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Which the incremental cash flows of a new project defined as

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Problem 1: A concept is that the expected market value of an asset at the end of a project's life time is referred to as the asset's _____ value.

a. Salvage.

b. Erosion. YES

c. Terminal.

d. Opportunity.

e. Sunk.

Problem 2: The incremental cash flows of a new project defined as:

a. The total cash flows of a firm from the point at which a project is implemented until the point at which the project ends.

b. Any change in the future net income of a firm that results from a new project being implemented.

c. The cash flows that are foregone when a new project or activity is accepted. YES

d. Those cash flows that have already occurred and will not change whether or not a new project is accepted.

e. The changes in the firm's future cash flows that are a direct consequence of accepting the new project.

 

Reference no: EM132663654

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