Answer Happy

QUESTION 1 The additional cash flow that results from capital budgeting decisions, generated by a new product is referred to as: bonus cash flow increasing cash flow magic cash flow marginal cash flow QUESTION 2 Competition of a new product with an existing product of the same company is referred to as pilfering switching tration cannibalization QUESTION 3 Cost that have already been incurred, cannot be recovered, and should not influence current capital budgeting decisions are referred to as back cost dead cost dropped cost sunk cost
QUESTION 4 Cash flow that must be forgone as a result of an investment decision is referred to as opportunity cost. True False QUESTION 5 Cost incurred to make an investment operational is referred to as: budget value future cost discount cost capital cost QUESTION 6 Tax savings associated with the depreciation deduction for tax purposes is referred to as: amortization tax shield depletion tax shield depreciation tax shield asset tax shield
Estimated sales price of an asset at the end of its useful life is referred to as: pure cost end cost life value salvage value QUESTION 8 Projects that add something extra to the company in terms of sales or cost savings is referred to as: expansion projects growth projects phenom projects pet projects QUESTION 9 Projects that involve the replacement of an existing asset with a new one is referred to as: recover projects replacement projects residual projects refurbished projects
QUESTION 10 Oppurtunity associated with a real asset is referred to as: real option opportunity real deal opportunity real life opportunity real time opportunity