(No explanation needed)

1)True or? False: The main components needed to estimate a? projects incremental cash flows are the initial capital? investment, the change in? NWC, net income and the? firms market share.

2)True or? False: Opportunit costs have no impact on a? projects incremental CFs.

3)True or? False: Use of a? firms existing assets in a proposed project would result in an erosion cost.

4)True or? False: Working capital accounts typically go up at the beginning of a project and are then decreased later.

5)True or? False: ? Temples payment of? $1M to an architectural firm for a feasibility study of a new football stadium is an example of a sunk cost.

6)True or? False: ? Straight-line depreciation is higher in the later years of a? projects life.

7)True or? False: The market value of a? long-term asset at any point in time is equal to the? assets original cost plus all of the depreciation that has been taken on that asset.

8)True or? False: Sale of a piece of equipment at a gain reduces the CF from salvage.

9)True or? False: The installation cost is added to the accumulated depreciation of an asset to get the initial capital investment.