e c. incremental o d. sunk e. incidental QUESTION 30 3 points it is important to

Question

e c. incremental o d. sunk e. incidental QUESTION 30 3 points it is important to identify and use only incremental cash flows in capital investment decisions a Only when the stand-alone principal fails to hold b Because they are the simplest to calculate c. To accomodate unforeseen changes that might occur o d Because ultimately it is the change in a firm's overall future cash flows that matter. ee Whenever sunk costs are involved QUESTION 31 3 points Ted purchased an annuity today that will pay $1000 a month for five years. He received his first mon today. Allison purchased an annuity that will pay $1000 a month for five years. She will receive her f

Explanation / Answer

because ultimately it's the change in a firm's overall future cash flows that matter

the above is the answer as option d

because these add value to the companys existing value base and generate future returns for the shareholders.

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