QUESTION 1 Cost incurred for a project's feasibility study is an example ofthe following cost in capital budgeting 0 Financing cost 0 Sunk cost 0 Opportunity cost 0 None of the above QUESTlON 2 which of the following item should be excluded in calculating the aftertax free cash ow (FCF) ?(Assume all items relates to the project) 0 Additions to working capital 0 Incremental operating expenses 0 Interestexpense 0 Capital expenditures QUESTION 3 \"Asus is planning to introduce a new model of laptop, which is expected to reduce the sales of the company's existing products. Is the reduction in sales ofAsus' current products a relevant cash flow for evaluating the introduction of the new model?" 0 Not relevant - sunk cost 0 Relevant - opportunity cost 0 Relevant - side effect 0 Not relevant - nancing cost QUESTION 4 Eternal Ltd requires a machine for its 7-year project. The cost of the machine is $500,000 and its useful life is 10 years. The tax regulation allows the machinery to be depreciated for 10 years on a straight-line basis with a zero salvage value. At the end of 7 years, Eternal Lid expects to sell the machine for $200,000. If the company faces a 30% tax rate, what is the after-tax cash flow from selling the machine? O $150,000 $185,000.00 $200,000.00 $350,000 QUESTION 5 Logitech Ltd is considering a project that will generate annual incremental sales of $62,000 and annual incremental costs of $42,000. The project will require a fixed asset investment of $50,000, which will be depreciated straight-line to zero over 5 years. If the tax rate is 30%, what is the OCF of the project