Which is incremental cash flow

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Reference no: EM132044593

1. Which of the following is an incremental cash flow that should be included in a project analysis? (CIRCLE ALL THAT APPLY.)

A) Changes in net operating working capital

B) Shipping and installation costs

C) Cannibalization effects

D) Opportunity Costs

E) Sunk costs that have been expensed or tax purposes

2. A disadvantage of to investor of a convertible bond is that

a, the stock price may never rise above the conversion price

b, if interest rate rise, the pure bond value or floor price will decline

c, the interest rate on convertibles is generally one-tjird below the coupon rate on straight bonds of similar risk.

d, all of these option are disadvantage

Reference no: EM132044593

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