The Cash Flow from Projects for a Company Is

Multiple Choice

The cash flow from projects for a company is:

A) The net operating cash flow generated by the project, less any sunk costs and erosion costs.
B) The sum of the incremental operating cash flow and after-tax salvage value of the project.
C) The bottom line net income generated by the project, plus the annual depreciation expense.
D) The sum of the incremental operating cash flow, capital spending, and net working capital expenses incurred by the project.
E) The sum of the sunk costs, opportunity costs, and erosion costs of the project.