Dan is comparing three machines to determine which one to purchase. The machines sell for differing prices

The top-down approach to computing the operating cash flow:    A.  ignores noncash expenses. B.  applies only if a project increases sales. C.  applies only to cost cutting projects. D.  is equal to sales - costs - taxes + depreciation. E.  is used solely to compute a bid price. Refer to section 10.5

37.	Increasing which one of the following will increase the operating cash flow assuming that the bottom-up approach is used to compute the operating cash flow?    A.  erosion effects B.  taxes C.  fixed expenses D.  salaries E.  depreciation expense Refer to section 10.5

38.

Which one of the following statements is correct concerning bid prices?    A.  The bid price is the maximum price that a firm should bid. B.  A firm can submit a bid that is higher than the computed bid price and still break even. C.  A bid price ignores taxes. D.  A bid price should be computed based solely on the operating cash flows of the project. E.  A bid price should be computed based on a zero percent required rate of return. Refer to section 10.6

39.

Dan is comparing three machines to determine which one to purchase. The machines sell for differing prices, have differing operating costs, differing machine lives, and will be replaced when worn out. Which one of the following computational methods should Dan use as the basis for his decision?    A.  internal rate of return B.  operating cash flow C.  equivalent annual cost D.  depreciation tax shield E.  bottom-up operating cash flow Refer to section 10.6