Given a project's expected cash flows, it is easy to calculate its NPV, IRR, MIRR, payback, and discounted payback. Cash

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Given a project's expected cash flows, it is easy to calculateits NPV, IRR, MIRR, payback, and discounted payback. Cash flows areestimated based on information from various sources. There isuncertainty in a project's forecasted cash flows, and some projectsare more uncertain and thus riskier than others.
The most critical step in capital budgeting analysis is(Choices: net income, cash flow, accountingincome) estimation.
The key is to focus on only (Choices: relevant net income,incremental accounting income, incremental cash flows) Factorsthat complicate the analysis are sunk costs, opportunity costs,externalities, changes in net operating working capital, andsalvage values.
Give the correct response to each of the followingquestions.
Which of the following items should be included in the capitalbudgeting analysis?a. Sunk costs
b. Interest payments
c. Dividend payments
d. Opportunity costs
An outlay that was incurred in the past and cannot be recoveredin the future regardless of whether the project under considerationis accepted is known asa. Opportunity cost
b. Externality
c. Sunk cost
d. CannibalizationItem
Which of the following is an example of an opportunitycost?a. A publisher introduces a new textbook which reduces sales of oneof their existing textbooks.b. A firm has land that can be used in building a new store. If thenew store is not built, the firm could sell the land for $2 million(net of taxes).c. Apple's investment in the iTunes music store boosted sales ofits iPod.d. The cost of a report done 2 years ago to investigate thepotential of a new plant and the permits required to buildit.e. Statements a and d are both examples of opportunity costs.
Which of the following is an example of cannibalization?a. A publisher introduces a new textbook which reduces sales of oneof their existing textbooks.b. A firm has land that can be used in building a new store. If thenew store is not built, the firm could sell the land for $2 million(net of taxes).c. Apple's investment in the iTunes music store boosted sales ofits iPod.d. The cost of a report done 2 years ago to investigate thepotential of a new plant and the permits required to buildit.e. Statements c and d are both examples of cannibalization.