1) The difference between a firm's future cash flows with a project and those without the project flows that will occur if and only if some specific event occurs a) Incremental Cash flows b) Opportunity Cost c) Sunk Cost d) Stand-alone Risk e) Ewan ko f) Nosebleed 2) An analysis involving the decision as to whether to replace an existing asset with a new asset. a) Sensitivity analysis b) Scenario analysis c) False d) Replacement Analysis e) base case scenario analysis f) True 3) It allows us to change more than one variable at a time, and it incorporates the probabilities of changes in the key variables. a) Replacement Analysis b) Scenario analysis c) Salvage Value d) Incremental Cash flows e) Sensitivity analysis f) Flexibility 4) A method of comparing projects with unequal lives that assumes that each project can be repeated as many times as necessary to reach a common life a) Sensitivity analysis b) Replacement Analysis c) None d) CAPM Approach e) Monte Carlo Simulation analysis f) Replacement chain approach 5) Cost of the next best alternative use of money, time, or resources when one choice is made rather than another a) Implicit cost b) Explicit cost c) Opportunity cost d) Fixed Cost e) Relevant cost f) Sunk cost

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