1. If a project is financed with common stock, dividend payments should be _____ the calculation of free cash flows of the project.
A) Excluded from
B) included in
2. Taxes paid on salvaged assets, tax rate x (Salvage value – Book value), ______ if the tax rate increases.
A) do not change
3. The higher the depreciation, the _____ the future free cash flows of a project.