Which factor should be included in the cash flows used to estimate a project's NPV?
A)all overhead costs incurred
B)interest on funds borrowed to help finance the project
C)the end-of-project recovery of any working capital required to operate the project
D)cannibalization effects, but only if those effects increase the project's projected cash flows

Question

Quizplus · Accepted Answer

The end-of-project recovery of any working capital is a relevant cash flow for NPV calculations as it represents cash inflows that will occur at the end of the project.

Which Factor Should Be Included in the Cash Flows Used