To increase productive capacity, a company is considering a proposed new plant. Which of the following statements is CORRECT? a. Capital budgeting decisions should be based on before-tax cash flows. b. The cost of capital used to discount cash flows in a capital budgeting analysis should be calculated on a before-tax basis. c. In calculating the project's operating cash flows, the firm should not deduct financing costs such as interest expense, because financing costs are accounted for by discounting at the cost of capital. If interest were deducted when estimating cash flows, this would, in effect, "double count" it. d. Since depreciation is a non-cash expense, the firm does not need to deal with depreciation when calculating the operating cash flows. e. When estimating the project's operating cash flows, it is important to include both opportunity costs and sunk costs, but the firm should ignore the cash flow effects of externalities since they are accounted for in the discounting process.
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James has set the goal of achieving all "a"s during this year of school.which term best describes this goal
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What are the general categories of capital budget scenarios? describe the overall decision-making context for each.
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Business, 22.06.2019 06:40
10. which of the following is true regarding preretirement inflation? a. defined-benefit plans provide more inflation protection than defined-contribution plans. b. because of preretirement inflation, possible investment-related growth is increased for defined-contribution plans. c. all types of benefits are designed to cope with preretirement inflation. d. preretirement inflation is generally reflected in the increase in an employee's compensation level over a working career.
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mark, a civil engineer, entered into a contract with david. as per the contract, mark agreed to design and build a house for david for a specified fee. mark provided david with an estimation of the total cost and the contract was mutually agreed upon. however, during construction, when mark increased the price due to a miscalculation on his part, david refused to pay the amount. this scenario is an example of a mistake.
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To increase productive capacity, a company is considering a proposed new plant. Which of the followi...
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