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Assume you are drafting cash flow projections for a project. Which of the following statements are correct?A higher cost of capital can turn the project into a negative NPV project.Taxes are a cash flow and depend on depreciation, although depreciation itself is not a cash flow.The method of depreciation you use can and usually will have an impact on the NPV you obtain for the project.If the project has negative NPV, you should implement it.Cost of capital for this project is identical to all other projects.You can safely ignore any salvage value at the end of the project.You cannot ignore inflation. Instead, you have to obtain real cash flows first, and then discount them at nominal rates.
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