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NEW QUESTION: 1
Which of the following statements is correct?
A. The existence of "externalities" reduces the NPV to a level below the value that would exist in the absence of externalities.
B. The preceding statement would be true if "upward" were replaced with "downward."
C. If one of the assets that would be used by a potential project is already owned by the firm, and if that asset could be leased to another firm if the project is not undertaken, then the net rent that could be obtained should be charged as a cost to the project under consideration.
D. The rent referred to in the other statement is a sunk cost, and as such it should be ignored.
E. In a capital budgeting analysis where part of the funds used to finance the project are raised as debt, failure to include interest expense as a cost in the cash flow statement when determining the project's cash flows will lead to an upward bias in the NPV.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The foregone rent is an "opportunity cost" which should be charged to the project under consideration. The cash flows should not take account of interest, because financial costs are dealt with by discounting at the WACC. If interest were deducted to find cash flows, then this cost would be "double counted," and the NPV would be downward biased. Ignoring interest when determining cash flows produces no bias in the NPV whatever. Note also that externalities can be either positive or negative--they tend to be negative if the new project is a substitute for existing products, but positive if the new project is complementary to the firm's other products.

NEW QUESTION: 2
HOTSPOT



Answer:
Explanation:

NEW QUESTION: 3
IPv6では、ARPの代わりに何が使用されますか？
A. Route Advertisement Protocol
B. ARPv6
C. DHCPv6
D. NDP
Answer: D

NEW QUESTION: 4
On which type of port is STP disabled?
A. FlexLink
B. PortFast
C. P2p Edge
D. EtherChannel
Answer: A
Explanation:
Reference:
https://www.cisco.com/c/en/us/td/docs/switches/lan/catalyst3550/software/release/12-2_25_see/configuration/gu

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