Question: The stand-alone principle allows us to analyze each project in isolation from the firm simply by focusing on incremental cash flows. Which of the following

 The stand-alone principle allows us to analyze each project in isolation

The stand-alone principle allows us to analyze each project in isolation from the firm simply by focusing on incremental cash flows. Which of the following cash flows are not relevant for our analysis of a new project? Financing costs Opportunity costs Taxes Erosion or side effects Not working capital

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