When calculating the NPV for new investment

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Reference no: EM131975918

1. When calculating the NPV for a new investment, receipt at the end of the project for $50,000 would be:

Included, as an annual cash flow.

Included as part of initial investment.

Included, as a lump sum cash flow.

Excluded, as duplicative of WACC costs.

Excluded, as a sunk cost.

2. When calculating NPV, a payment of $40,000 a year for interest charges would be:

Included, as a lump sum cash flow.

Included, as a part of an annuity cash flow.

Excluded, as duplicative of WACC costs.

Included as part of initial investment.

Excluded, as a sunk cost.

Reference no: EM131975918

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