This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is correct? (Read 73 times)

mt05945

  • Full Member
  • ***
  • Posts: 141
Which of the following statements is correct?

If one of the assets to be used by a potential project is already owned by the firm, and if that asset could be leased to another firm if the new project were not undertaken, then the net rent that could be obtained should be charged as a cost to the project under consideration.


The existence of any type of “externality” will reduce the calculated NPV versus the NPV that would exist without the externality.


In a capital budgeting analysis where part of the funds used to finance the project are raised as debt, failure to include interest expense as a cost when determining the project’s cash flows will lead to a downward bias in the NPV.


If one of the assets to be used by a potential project is already owned by the firm but is not being used, then any cost associated with that asset is a sunk cost and should be ignored.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by mt05945 on Aug 7, 2023

heathercab

  • Full Member
  • ***
  • Posts: 161
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly




mt05945

  • Member
  • Posts: 141
Reply 2 on: Aug 7, 2023
:D TYSM


Animal_Goddess

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Excellent

 

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

For a complete list of videos, visit our video library