In calculating the incremental after-tax cash flows associated with a particular investment, the firm must consider many types of cash flows. Select all the incremental cash flow types below that the firm would not incorporate directly into their incremental after-tax cash flow estimates. A) revenues B) operating costs C) sunk costs D) net working captial E) opportunity costs F) financing costs
In calculating the incremental after-tax cash flows associated with a particular investment, the firm must consider many types of cash flows. Select all the incremental cash flow types below that the firm would not incorporate directly into their incremental after-tax cash flow estimates. A) revenues B) operating costs C) sunk costs D) net working captial E) opportunity costs F) financing costs
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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In calculating the incremental after-tax cash flows associated with a particular investment, the firm must consider many types of cash flows. Select all the incremental cash flow types below that the firm would not incorporate directly into their incremental after-tax cash flow estimates.
A) revenues
B) operating costs
C) sunk costs
D) net working captial
E) opportunity costs
F) financing costs
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