1. Total cash flow from a project is defined as:

A. Earnings before interest and taxes minus taxes plus depreciation.

B. Operating cash flow minus capital spending minus the change in net working capital.

C. Earnings before interest and taxes plus taxes minus depreciation.

D. Operating cash flow minus the change in net working capital plus capital spending.

E. Operating cash flow plus depreciation minus capital spending.

3. The net present value of a project will decrease when the:

A. Discount rate decreases.

B. Cash inflows are received late.

C. Initial investment decreases in amount.

D. Estimated salvage value of the equipment is increased.

E. Tax rate applied to the project's profits is decreased.