When evaluating the cash flows associated with a capital budgeting project, the shipping and installation costs associated with the purchase of an asset are included in the computation of the: a. incremental operating cash flows, because shipping and installation costs represent expenses that must be written off "annually over the life of the project. b. project's opportunity cost, because these costs increase the potential of the project. c. terminal cash flows, because these expenses are not paid until the end of the project's life. d. sunk costs, because these expenses do not affect any cash flows associated with purchasing the project. e. initial investment outlay, because these expenses are part of the project's depreciable basis.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

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