The Cash Flow from Projects for a Company Is Computed

Multiple Choice

The cash flow from projects for a company is computed as the:

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