The difference between a firm's future cash flows if it accepts a project and the firm's future cash flows if it does not accept

1.

The difference between a firm's future cash flows if it accepts a project and the firm's future cash flows if it does not accept the project is referred to as the project's:    A.  incremental cash flows. B.  internal cash flows. C.  external cash flows. D.  erosion effects. E.  financing cash flows. Refer to section 10.1

2.

The fact that a proposed project is analyzed based on the project's incremental cash flows is the assumption behind which one of the following principles?    A.  underlying value principle B.  stand-alone principle C.  equivalent cost principle D.  salvage principle E.  fundamental principle Refer to section 10.1

3.	Which one of the following costs was incurred in the past and cannot be recouped?    A.  incremental B.  side C.  sunk D.  opportunity E.  erosion Refer to section 10.2

4.	The option that is foregone so that an asset can be utilized by a specific project is referred to as which one of the following?    A.  salvage value B.  wasted value C.  sunk cost D.  opportunity cost E.  erosion Refer to section 10.2