Question 29 PART 1 The stand-alone principle allows us to analyze each project in isolation from the firm simply by focusing on incremental cash flows. Which of the following cash flows are not relevant for our analysis of a new project? Group of answer choices Financing costs Opportunity costs Taxes Erosion or side effects Net working capital Question 29 PART 2 Will Smith once turned down the role to play Neo in “The Matrix.” The part went to Keanu Reeves. Will Smith instead chose to star as a cowboy in the blockbuster failure “The Wild Wild West.” Kevin Costner also once turned down the role to play Andy Dufresne in “Shawshank Redemption.” The part went to Tim Robbins. Kevin Costner instead chose to star as the Mariner in the blockbuster failure “Waterworld.” Based on the information above, what is one of the most relevant costs both Will Smith and Kevin Costner should consider when evaluating future movie projects? Group of answer choices Sunk costs Opportunity costs Changes in net working capital Taxes Financing costs
Question 29 PART 1 The stand-alone principle allows us to analyze each project in isolation from the firm simply by focusing on incremental cash flows. Which of the following cash flows are not relevant for our analysis of a new project? Group of answer choices Financing costs Opportunity costs Taxes Erosion or side effects Net working capital Question 29 PART 2 Will Smith once turned down the role to play Neo in “The Matrix.” The part went to Keanu Reeves. Will Smith instead chose to star as a cowboy in the blockbuster failure “The Wild Wild West.” Kevin Costner also once turned down the role to play Andy Dufresne in “Shawshank Redemption.” The part went to Tim Robbins. Kevin Costner instead chose to star as the Mariner in the blockbuster failure “Waterworld.” Based on the information above, what is one of the most relevant costs both Will Smith and Kevin Costner should consider when evaluating future movie projects? Group of answer choices Sunk costs Opportunity costs Changes in net working capital Taxes 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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Question 29 PART 1
The stand-alone principle allows us to analyze each project in isolation from the firm simply by focusing on incremental cash flows. Which of the following cash flows are not relevant for our analysis of a new project?
Group of answer choices
Financing costs
Opportunity costs
Taxes
Erosion or side effects
Net working capital
Question 29 PART 2
Will Smith once turned down the role to play Neo in “The Matrix.” The part went to Keanu Reeves. Will Smith instead chose to star as a cowboy in the blockbuster failure “The Wild Wild West.”
Kevin Costner also once turned down the role to play Andy Dufresne in “Shawshank Redemption.” The part went to Tim Robbins. Kevin Costner instead chose to star as the Mariner in the blockbuster failure “Waterworld.”
Based on the information above, what is one of the most relevant costs both Will Smith and Kevin Costner should consider when evaluating future movie projects?
Group of answer choices
Sunk costs
Opportunity costs
Changes in net working capital
Taxes
Financing costs
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