The cash flow from a project is computed as the: a. sum of the sunk costs, oppor

Question

The cash flow from a project is computed as the: a. sum of the sunk costs, opportunity costs, and erosion costs of the project. b. sum of the incremental operating cash flow and aftertax salvage value of the project. c. net operating cash flow generated by the project, less any sunk costs and erosion costs. d. net income generated by the project, plus the annual depreciation expense. e. sum of the incremental operating cash flow, capital spending, and net working capital cash flows incurred by the project.

Explanation / Answer

e) sum of the incremental operating cash flow, capital spending, and net working capital cash flows incurred by the project.

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