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
5. How do we model sunk cost when modeling cash
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?