Written down value is defined as:

A)Initial Cost + Depreciation per annum

B)Initial Cost - Accumulated Depreciation

C)Initial Cost x Tax Rate

D)Initial Cost + Accumulated Depreciation

E)Initial Cost - Depreciation per annum

Which one of the following cash flows can be ignored when analyzing a project?

A)Initial costs

B)Operating sales cash flows

Dividend cash flows

C)Taxes

D)Operating cost cash flows

The situation a firm faces when it has positive net present value projects but cannot obtain financing for those projects is referred to as:

A)a contingency situation.

B)a sunk cost situation.

C)capital rationing.

D)a discounted cash flow.

E)sensitivity planning.