Tick the factors that financial manager should include when computing the incremental free cash flows of...

Tick the factors that financial manager should include when computing the incremental free cash flows of an investment decision. Project externalities Opportunity costs Sunk costs Financing costs

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Which one of the following would NOT result in incremental cash flows and thus should NOT...

Which one of the following would NOT result in incremental cash flows and thus should NOT be included in the capital budgeting analysis for a new product? A. Using some of the firm's high-quality factory floor space that is currently unused to produce the proposed new product. This space could be used for other products if it is not used for the project under consideration. B. Revenues from an existing product would be lost as a result of customers switching...

i)How should you use operating costs when calculating incremental cash flows? a) Do not subtract operating...

i)How should you use operating costs when calculating incremental cash flows? a) Do not subtract operating costs, and then subtract taxes on operating income before operating costs. b)Subtract operating costs, calculate taxes off of that number, and then add them back. c)Subtract taxes as though operating costs were not tax-deductible. Then subtract operating costs. d) Subtract operating costs. ii) At the end of a project, the equipment purchased at the beginning is expected to have a positive market value that...

What are relevant cash flows? Why should we only include these cash flows in our capital...

What are relevant cash flows? Why should we only include these cash flows in our capital budgeting analysis? Please also give some examples.

Is value of equity the sum of discounted future cash flows to equity? And when computing...

Is value of equity the sum of discounted future cash flows to equity? And when computing the ROE and ROC should I use market value of the equity or book value of equity? Can someone give me answers in a bit details?

Describe four problematic situations that will make determining incremental cash flows difficult. Describe two incremental cash...

Describe four problematic situations that will make determining incremental cash flows difficult. Describe two incremental cash flows that will occur at the investment outlay.

Which of the following cash flows is NOT an incremental cash flow associated with a project...

Which of the following cash flows is NOT an incremental cash flow associated with a project to dig a new gold mine? Select one: a. The cost of taking on new employees who will be hired to work on the mine site. b. The cost of land which will be purchased for the new mine. c. The cost of mining equipment which will be purchased for the new mine. d. The cost of an environmental impact study which has been...

True or False A financial manager must be certain about future cash flows when making investment...

True or False A financial manager must be certain about future cash flows when making investment decisions.

Question: In the Case, when calculating incremental unlevered net income, should we include all the expenses...

Question: In the Case, when calculating incremental unlevered net income, should we include all the expenses mentioned in the case? If not, what expenses should we exclude and why? (I know that I need to exclude interest expenses but can someone let me know if I also need to exclude overhead expenses? I am confused) Other than that I don't think I missed anything else but, feel free to correct me if I am wrong. Information: Canyon Buff Corp. has...

What are free cash flows for a firm? Describe the steps of estimating free cash flows...

What are free cash flows for a firm? Describe the steps of estimating free cash flows of a firm. What does it mean when a firms cash flow is negative? Explain with examples

Which of the following statements is correct? a. The statement of cash flows should include changes...

Which of the following statements is correct? a. The statement of cash flows should include changes in summary accounts, such as current assets and current liabilities, as well as changes in all individual accounts. b. If a firm sells equity to reduce long-term bonds, this is a capital financing transaction and does not appear on the statement of cash flows. However, if the firm sells equity in order to purchase assets, this transaction would be included in the statement of...

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