FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | 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?
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FIN 534 Week 8 Chapter 14 Solution