Correct answer = D
"Capital Budgeting," John D. Stowe and Jacques R. Gagné 2008 Modular Level I, Vol. 4, pp. 11-12 Study Session 11-44-b discuss the basic principles of capital budgeting, including the choice of the proper cash flows and determining the proper discount rate The increase in ice cream sales (externality) should be treated as an incremental cash flow and should be included in the analysis of the project's net present value.
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