Chapter 11 Question 1 The term ___________ refers to the fact that these cash flows reflect the amount by which the firm's total after-tax free cash flows will change if the project is adopted. a) none of these b) periodic c) ending cash flows d) incremental Question 2 The idea that we can evaluate the cash flows from a project independently of the cash flows for the firm is known as a) the stand-alone principle. b) the dependent principle. c) the independent principle. d) None of the above. Question 3 Corporate overhead allocations should only be taken into account on project analysis if a) the firm is currently covering all of its overhead allocations. b) the firm is currently unable to cover all of its overhead allocations. c) the overhead allocations involve cash expenditures. d) None of the above