1. When we talk about a relevant cash flow, how do you determine relevance?
3. Should we use increment payoff or average payoff from a project? Pick one.
4. How do we model opportunity cost when modeling cash flows?
5. How do we model sunk cost when modeling cash flows?
6. When we talk of the additional investment in working capital, what are we talking about?
7. How is depreciation a “tax shield”?
8. Name two differences we face when evaluating the NPV of a project in different country?
9. When should you use an equivalent annual cost rather than a regular NPV?
10. How do we model interest cost when we estimate the cash flows for a project?
11. When should we allocate overhead to a project?