1. When calculating the NPV for a new investment, receipt at the end of the project for $50,000 would be:
Included, as an annual cash flow.
Included as part of initial investment.
Included, as a lump sum cash flow.
Excluded, as duplicative of WACC costs.
Excluded, as a sunk cost.
2. When calculating NPV, a payment of $40,000 a year for interest charges would be:
Included, as a lump sum cash flow.
Included, as a part of an annuity cash flow.
Excluded, as duplicative of WACC costs.
Included as part of initial investment.
Excluded, as a sunk cost.