FIN 534 RANK Imagine Your Future / FIN 534 RANK Imagine Your Future / - Page 145

When evaluating a new project, firms should include in the projected cash flows all of the following EXCEPT: Question 29 Which of the following is NOT a relevant cash flow and thus should not be reflected in the analysis of a capital budgeting project? Question 30 Suppose Tapley Inc. uses a WACC of 8% for below-average risk projects, 10% for average-risk projects, and 12% for above-average risk projects. Which of the following independent projects should Tapley accept, assuming that the company uses the NPV method when choosing projects? =============================================== FIN 534 Week 8 Chapter 14 Solution