1. Complimentary Project
A project that causes a cash outlay that has already been incurred and that cannot be recovered regardless of whether the project is accepted or not.
None of the above.
A new product that reduces the cash flows that the firm would have otherwise had.
A project that creates a positive incidental effect.
A project that cannot be taken at the same time as another project.
2. A piece of capital equipment costing $ 400,000 today has no (zero) salvage value at the end of five years. If straight-line depreciation is used, what is the book value of the equipment at the end of three years ?
$ 120,000
$ 80,000
$ 160,000
$ 240,000