Question 10 When estimating future cash flows, which one of the following should NOT be considered? Answers: a. none of these should be included when estimating cash flows for NPV analysis b. opportunity costs C. externalities d. salvage values e. sunk costs Question 11 Which one of the following terms refers to the fact when a company can't finance all the projects that have NPV>0. Answers: a. Post audits b. Asymmetric information c. Breakeven analysis d. Capital rationing e. Mutually exclusive Question 12 CSI Corp. started a project that requires more investment. They have to decide whether to continue with the project or not. What are their options? Answers: a. Try to reduce the costs of the project b. Postpone or delay the project c. Continue or even expand the project d. All of these e. Abandon the project Question 13 Which of the following lowers NPV? Answers: a. Cannibalization b. Neither higher discount rates or cannibalization lowers NPV c. Both higher discount rates and cannibalization d. Higher discount rates