Exam for FINC 306 Final Exam
,Comprehensive Table of Contents
Section Topic
I Corporate Finance Foundations & Financial Decision-Making
II Financial Statements, Cash Flow & Ratio Analysis
III Time Value of Money
IV Discounted Cash Flow & Valuation
V Bond Valuation, Yields & Interest Rates
VI Stock Valuation & Equity Returns
VII Risk, Return, Diversification & CAPM
VIII Cost of Capital & WACC
IX Capital Budgeting: NPV, IRR, MIRR & Payback
X Incremental Cash Flows, Depreciation & Working Capital
XI Capital Structure, Leverage & Financing Decisions
XII Financial Markets & Institutions
XIII Derivatives, Options, Futures, Forwards & Swaps
XIV Risk Management & Hedging
XV Comprehensive Advanced FINC 306 Final Review
Exam Coverage
This comprehensive FINC 306 Final Exam integrates advanced corporate finance concepts across:
• Corporate finance foundations and financial decision-making
• Financial statements and cash-flow analysis
• Financial ratios and DuPont analysis
• Time value of money
• Discounted cash-flow valuation
, • Bond valuation, yields, duration, and interest-rate risk
• Stock valuation and equity returns
• Risk, return, diversification, beta, and CAPM
• Cost of capital and WACC
• Capital budgeting and project evaluation
• Incremental cash flows, depreciation, and working capital
• Capital structure and leverage
• Financing decisions and agency considerations
• Financial markets and institutions
• Derivatives and derivative strategies
• Options, futures, forwards, and swaps
• Risk management and hedging
• Integrated advanced corporate finance applications
Exam Features
✓ 415 Advanced Questions
✓ Multiple-Choice Format (A–D)
✓ Difficult Quantitative & Conceptual Problems
✓ Detailed Answer Rationales
✓ Explanations of Incorrect Options
✓ Irregular & Unpredictable A–D Answer Distribution
✓ Exam Strategy
✓ Finance Pearl
✓ Calculation-Based Applications
✓ Integrated Financial Decision-Making Scenarios
✓ Comprehensive Advanced Final Review
,Corporate Finance Foundations & Financial Decision-Making
Question 1
A division manager is evaluating a project that will increase the division’s reported earnings per share but
has a negative net present value when discounted at the project’s appropriate required return. Which action
is most consistent with sound corporate financial management?
A. Accept the project because EPS increases
B. Accept the project if it also increases accounting revenue
C. Reject the project because it reduces the market value of the firm
D. Reject the project only if it requires external financing
Correct Answer: C
Rationale: The central financial objective of a corporation is generally to maximize the market value of owners’
equity, not to maximize accounting earnings or EPS in isolation. A negative-NPV investment is expected to
generate less value than the opportunity cost of the capital committed to it. Even though reported EPS may
rise, accepting the project would reduce shareholder wealth.*
Why the other options are less appropriate: A confuses accounting performance with economic value creation.
B incorrectly treats revenue growth as sufficient evidence of value creation. D is incorrect because a project’s
acceptability does not depend simply on whether financing is internal or external.
Exam Strategy: When EPS, accounting profit, or revenue conflicts with NPV, prioritize NPV and
shareholder value.
Finance Pearl: Growth is valuable only when the return generated exceeds the appropriate cost of capital.
Question 2
A corporation has $30 million of internally generated cash available. Management argues that projects
financed with this cash should be accepted even if their expected returns are below the firm’s required
return because “internal funds have no financing cost.” What is the strongest response?
A. Internal funds have an opportunity cost because shareholders could ultimately receive or reinvest those
funds elsewhere
B. Internal financing has no cost because no interest payment is made
C. Retained earnings should always be invested before debt is considered
D. Projects financed internally should be evaluated using a zero discount rate
Correct Answer: A
Rationale: Retained earnings are not free capital. Funds retained within the corporation belong economically
to shareholders and could potentially be distributed to them for investment elsewhere. Therefore, internally
generated capital carries an opportunity cost and should be invested only when expected returns adequately
compensate for risk.*
,Why the other options are less appropriate: B ignores opportunity cost. C is an overly rigid financing rule. D
would severely overvalue future project cash flows and encourage acceptance of value-destroying
investments.
Exam Strategy: Whenever a question says “internal funds are free,” think opportunity cost.
Finance Pearl: The absence of an explicit interest payment does not imply a zero economic cost of capital.
Question 3
A CFO is choosing between issuing additional common equity and borrowing through long-term bonds to
finance a major expansion. Which category of financial decision is being made most directly?
A. Working-capital management
B. Capital budgeting
C. Dividend policy
D. Capital structure
Correct Answer: D
Rationale: Capital structure concerns the mix of debt, equity, and other long-term financing sources used to
fund the firm. Choosing between bonds and common equity is therefore fundamentally a capital-structure
decision.*
Why the other options are less appropriate: A concerns short-term assets and liabilities. B concerns which long-
term investments should be undertaken. C concerns distributions of cash or other value to shareholders.
Exam Strategy: What to invest in = capital budgeting; how to finance it = capital structure.
Finance Pearl: Financing decisions can affect risk, required return, flexibility, and ultimately firm value.
Question 4
A firm is considering two mutually exclusive projects of comparable risk. Project A creates an estimated $11
million increase in firm value, while Project B creates $7 million but would make the CEO’s division the
largest in the company. Which choice best reflects shareholder wealth maximization?
A. Project B because organizational growth improves managerial influence
B. Project A because it creates greater incremental economic value
C. Either project because both increase company size
D. Project B if it produces greater accounting revenue
Correct Answer: B
Rationale: When mutually exclusive investments are compared, the alternative generating the greatest
increase in firm value should generally be selected. Managerial prestige, organizational size, or revenue growth
should not override superior economic value creation.*
,Why the other options are less appropriate: A reflects a potential agency conflict. C ignores the difference in
value generated. D focuses on an accounting measure rather than economic wealth.
Exam Strategy: For mutually exclusive alternatives, choose the project producing the highest value, not
merely a positive outcome.
Finance Pearl: Empire building is a classic manifestation of managerial agency problems.
Question 5
Which situation most clearly represents an agency conflict arising from the separation of ownership and
control?
A. Bondholders require restrictive covenants before lending
B. Investors sell shares after unfavorable information
C. Managers retain excess cash to expand their control even though shareholders would be better served by
receiving the funds
D. A corporation rejects a project whose expected return is below its required return
Correct Answer: C
Rationale: An agency conflict exists when managers, acting as shareholders’ agents, make decisions that
advance managerial interests rather than shareholder wealth. Retaining excess cash for unnecessary expansion
may increase managerial power while reducing shareholder value.*
Why the other options are less appropriate: A reflects creditor protection rather than a direct manager-
shareholder agency example. B is an ordinary capital-market transaction. D is consistent with value-maximizing
financial management.
Exam Strategy: Look for managerial self-interest that imposes a cost on owners.
Finance Pearl: Agency costs can include excessive perks, empire building, inefficient investment, and costly
monitoring mechanisms.
Question 6
A company’s stock price declines immediately after management announces a large acquisition, even
though management forecasts that total corporate revenue will increase by 40%. Which interpretation is
most defensible?
A. Markets never reward revenue growth
B. The market may believe the acquisition’s expected benefits are insufficient relative to its cost and risk
C. The company’s accounting earnings must already have declined
D. Stock prices respond only to dividend announcements
Correct Answer: C
,Wait sequence requires C, but correct logically B. Need align. We can rewrite options so C is correct. Let's
ensure no visible issue. Need redo Q6. Continue carefully.
Question 6
A company’s stock price declines immediately after management announces a large acquisition, even
though management forecasts that total corporate revenue will increase by 40%. Which interpretation is
most defensible?
A. Revenue growth necessarily destroys shareholder wealth
B. The decline proves that accounting earnings will immediately become negative
C. Investors may believe the acquisition’s expected incremental cash flows do not justify its purchase price and
risk
D. Stock prices cannot respond rationally until audited financial statements are released
Correct Answer: C
Rationale: Investors value expected future cash flows relative to their timing and risk. An acquisition can
substantially increase sales while still destroying value if the acquiring company pays too much, expected
synergies are weak, integration risks are high, or future cash flows do not adequately compensate investors.*
Why the other options are less appropriate: A incorrectly assumes all revenue expansion destroys value. B
cannot be concluded from the price reaction. D ignores the forward-looking nature of security markets.
Exam Strategy: Never equate company growth automatically with shareholder wealth creation.
Finance Pearl: An acquisition creates value only when the value of benefits obtained exceeds the
economic price paid.
Question 7
The board wants to reduce the likelihood that executives will sacrifice long-term firm value merely to meet a
one-year earnings target. Which compensation structure would most directly help align managerial and
shareholder interests?
A. A substantial component of compensation tied to long-term equity value with an appropriate vesting
horizon
B. A guaranteed annual bonus independent of performance
C. Compensation based exclusively on current-year sales growth
D. Reimbursement of unlimited managerial discretionary expenditures
Correct Answer: A
Rationale: Long-term equity-linked compensation can encourage executives to internalize the effect of their
decisions on shareholder wealth. Longer vesting periods may reduce incentives to manipulate short-term
results at the expense of sustainable value.*
Why the other options are less appropriate: B provides weak performance alignment. C can motivate managers
to increase sales even when margins or value decline. D can increase agency costs.
, Exam Strategy: Effective incentive systems usually connect managerial rewards to long-term value, not
one-dimensional short-term metrics.
Finance Pearl: Incentive design matters because managers often optimize the metric on which
compensation depends.
Question 8
A highly profitable corporation repeatedly experiences difficulty paying suppliers because most sales are
made on generous credit terms and inventory levels have increased rapidly. Which financial management
function should receive the most immediate attention?
A. Dividend clientele analysis
B. Capital structure optimization
C. Long-term acquisition policy
D. Working-capital management
Correct Answer: D
Rationale: Working-capital management focuses on short-term assets and liabilities, including cash,
receivables, inventory, accounts payable, and other near-term obligations. A company may be profitable on an
accrual basis yet experience severe liquidity pressure if cash is tied up in receivables and inventory.*
Why the other options are less appropriate: A concerns shareholder payout preferences. B focuses mainly on
long-term financing. C involves long-term investment strategy rather than immediate liquidity.
Exam Strategy: When you see cash, receivables, inventory, and suppliers, think working capital.
Finance Pearl: Profitability does not guarantee liquidity.
Question 9
Why is maximization of current accounting profit generally an inferior corporate objective to maximization
of firm value?
A. Accounting profit completely ignores revenue
B. Accounting profit may fail to reflect adequately the timing, risk, and cash-flow consequences of decisions
C. Firm value is determined exclusively by current dividends
D. Accounting profit always exceeds operating cash flow
Correct Answer: B
Rationale: Value depends on the amount, timing, and risk of expected cash flows. Accounting profit is based on
accrual conventions and may not fully capture these dimensions. Two alternatives producing identical
accounting income can have substantially different economic values.*
, Why the other options are less appropriate: A is clearly false because revenue is a central component of
accounting income. C is too restrictive because value reflects expected future distributions and cash flows. D is
not universally true.
Exam Strategy: Value questions revolve around cash flow + timing + risk.
Finance Pearl: Accounting data is useful, but corporate finance ultimately converts information into
estimates of economic value.
Question 10
Shareholders authorize executives to make operating and investment decisions on their behalf. Under
agency theory, which description is correct?
A. Shareholders are principals, while managers are agents
B. Managers are principals, while shareholders are agents
C. Both managers and shareholders are creditors
D. Shareholders become agents only when the firm issues debt
Correct Answer: A
Rationale: Shareholders supply ownership capital and delegate decision-making authority to managers. Thus,
shareholders are principals and managers are their agents. The separation can improve specialization but also
creates the possibility of agency conflicts.*
Why the other options are less appropriate: B reverses the relationship. C misclassifies both parties. D has no
basis in standard agency theory.
Exam Strategy: Owner = principal; delegated decision-maker = agent.
Finance Pearl: Modern corporate governance exists partly to manage the consequences of this separation.
Question 11
A corporation has already spent $6 million investigating a possible production facility. Updated projections
indicate that constructing the facility today would cost another $40 million but the present value of its
future incremental cash flows is only $36 million. What should management do?
A. Build because abandoning the project wastes the original $6 million
B. Build because total expected cash inflows exceed zero
C. Build if the original feasibility study was approved by the board
D. Reject the facility because the $6 million is sunk and the remaining investment has negative NPV
Correct Answer: D
Rationale: The $6 million has already been incurred and cannot be recovered regardless of the current
decision, making it a sunk cost. The relevant decision compares the incremental $40 million construction cost
,Comprehensive Table of Contents
Section Topic
I Corporate Finance Foundations & Financial Decision-Making
II Financial Statements, Cash Flow & Ratio Analysis
III Time Value of Money
IV Discounted Cash Flow & Valuation
V Bond Valuation, Yields & Interest Rates
VI Stock Valuation & Equity Returns
VII Risk, Return, Diversification & CAPM
VIII Cost of Capital & WACC
IX Capital Budgeting: NPV, IRR, MIRR & Payback
X Incremental Cash Flows, Depreciation & Working Capital
XI Capital Structure, Leverage & Financing Decisions
XII Financial Markets & Institutions
XIII Derivatives, Options, Futures, Forwards & Swaps
XIV Risk Management & Hedging
XV Comprehensive Advanced FINC 306 Final Review
Exam Coverage
This comprehensive FINC 306 Final Exam integrates advanced corporate finance concepts across:
• Corporate finance foundations and financial decision-making
• Financial statements and cash-flow analysis
• Financial ratios and DuPont analysis
• Time value of money
• Discounted cash-flow valuation
, • Bond valuation, yields, duration, and interest-rate risk
• Stock valuation and equity returns
• Risk, return, diversification, beta, and CAPM
• Cost of capital and WACC
• Capital budgeting and project evaluation
• Incremental cash flows, depreciation, and working capital
• Capital structure and leverage
• Financing decisions and agency considerations
• Financial markets and institutions
• Derivatives and derivative strategies
• Options, futures, forwards, and swaps
• Risk management and hedging
• Integrated advanced corporate finance applications
Exam Features
✓ 415 Advanced Questions
✓ Multiple-Choice Format (A–D)
✓ Difficult Quantitative & Conceptual Problems
✓ Detailed Answer Rationales
✓ Explanations of Incorrect Options
✓ Irregular & Unpredictable A–D Answer Distribution
✓ Exam Strategy
✓ Finance Pearl
✓ Calculation-Based Applications
✓ Integrated Financial Decision-Making Scenarios
✓ Comprehensive Advanced Final Review
,Corporate Finance Foundations & Financial Decision-Making
Question 1
A division manager is evaluating a project that will increase the division’s reported earnings per share but
has a negative net present value when discounted at the project’s appropriate required return. Which action
is most consistent with sound corporate financial management?
A. Accept the project because EPS increases
B. Accept the project if it also increases accounting revenue
C. Reject the project because it reduces the market value of the firm
D. Reject the project only if it requires external financing
Correct Answer: C
Rationale: The central financial objective of a corporation is generally to maximize the market value of owners’
equity, not to maximize accounting earnings or EPS in isolation. A negative-NPV investment is expected to
generate less value than the opportunity cost of the capital committed to it. Even though reported EPS may
rise, accepting the project would reduce shareholder wealth.*
Why the other options are less appropriate: A confuses accounting performance with economic value creation.
B incorrectly treats revenue growth as sufficient evidence of value creation. D is incorrect because a project’s
acceptability does not depend simply on whether financing is internal or external.
Exam Strategy: When EPS, accounting profit, or revenue conflicts with NPV, prioritize NPV and
shareholder value.
Finance Pearl: Growth is valuable only when the return generated exceeds the appropriate cost of capital.
Question 2
A corporation has $30 million of internally generated cash available. Management argues that projects
financed with this cash should be accepted even if their expected returns are below the firm’s required
return because “internal funds have no financing cost.” What is the strongest response?
A. Internal funds have an opportunity cost because shareholders could ultimately receive or reinvest those
funds elsewhere
B. Internal financing has no cost because no interest payment is made
C. Retained earnings should always be invested before debt is considered
D. Projects financed internally should be evaluated using a zero discount rate
Correct Answer: A
Rationale: Retained earnings are not free capital. Funds retained within the corporation belong economically
to shareholders and could potentially be distributed to them for investment elsewhere. Therefore, internally
generated capital carries an opportunity cost and should be invested only when expected returns adequately
compensate for risk.*
,Why the other options are less appropriate: B ignores opportunity cost. C is an overly rigid financing rule. D
would severely overvalue future project cash flows and encourage acceptance of value-destroying
investments.
Exam Strategy: Whenever a question says “internal funds are free,” think opportunity cost.
Finance Pearl: The absence of an explicit interest payment does not imply a zero economic cost of capital.
Question 3
A CFO is choosing between issuing additional common equity and borrowing through long-term bonds to
finance a major expansion. Which category of financial decision is being made most directly?
A. Working-capital management
B. Capital budgeting
C. Dividend policy
D. Capital structure
Correct Answer: D
Rationale: Capital structure concerns the mix of debt, equity, and other long-term financing sources used to
fund the firm. Choosing between bonds and common equity is therefore fundamentally a capital-structure
decision.*
Why the other options are less appropriate: A concerns short-term assets and liabilities. B concerns which long-
term investments should be undertaken. C concerns distributions of cash or other value to shareholders.
Exam Strategy: What to invest in = capital budgeting; how to finance it = capital structure.
Finance Pearl: Financing decisions can affect risk, required return, flexibility, and ultimately firm value.
Question 4
A firm is considering two mutually exclusive projects of comparable risk. Project A creates an estimated $11
million increase in firm value, while Project B creates $7 million but would make the CEO’s division the
largest in the company. Which choice best reflects shareholder wealth maximization?
A. Project B because organizational growth improves managerial influence
B. Project A because it creates greater incremental economic value
C. Either project because both increase company size
D. Project B if it produces greater accounting revenue
Correct Answer: B
Rationale: When mutually exclusive investments are compared, the alternative generating the greatest
increase in firm value should generally be selected. Managerial prestige, organizational size, or revenue growth
should not override superior economic value creation.*
,Why the other options are less appropriate: A reflects a potential agency conflict. C ignores the difference in
value generated. D focuses on an accounting measure rather than economic wealth.
Exam Strategy: For mutually exclusive alternatives, choose the project producing the highest value, not
merely a positive outcome.
Finance Pearl: Empire building is a classic manifestation of managerial agency problems.
Question 5
Which situation most clearly represents an agency conflict arising from the separation of ownership and
control?
A. Bondholders require restrictive covenants before lending
B. Investors sell shares after unfavorable information
C. Managers retain excess cash to expand their control even though shareholders would be better served by
receiving the funds
D. A corporation rejects a project whose expected return is below its required return
Correct Answer: C
Rationale: An agency conflict exists when managers, acting as shareholders’ agents, make decisions that
advance managerial interests rather than shareholder wealth. Retaining excess cash for unnecessary expansion
may increase managerial power while reducing shareholder value.*
Why the other options are less appropriate: A reflects creditor protection rather than a direct manager-
shareholder agency example. B is an ordinary capital-market transaction. D is consistent with value-maximizing
financial management.
Exam Strategy: Look for managerial self-interest that imposes a cost on owners.
Finance Pearl: Agency costs can include excessive perks, empire building, inefficient investment, and costly
monitoring mechanisms.
Question 6
A company’s stock price declines immediately after management announces a large acquisition, even
though management forecasts that total corporate revenue will increase by 40%. Which interpretation is
most defensible?
A. Markets never reward revenue growth
B. The market may believe the acquisition’s expected benefits are insufficient relative to its cost and risk
C. The company’s accounting earnings must already have declined
D. Stock prices respond only to dividend announcements
Correct Answer: C
,Wait sequence requires C, but correct logically B. Need align. We can rewrite options so C is correct. Let's
ensure no visible issue. Need redo Q6. Continue carefully.
Question 6
A company’s stock price declines immediately after management announces a large acquisition, even
though management forecasts that total corporate revenue will increase by 40%. Which interpretation is
most defensible?
A. Revenue growth necessarily destroys shareholder wealth
B. The decline proves that accounting earnings will immediately become negative
C. Investors may believe the acquisition’s expected incremental cash flows do not justify its purchase price and
risk
D. Stock prices cannot respond rationally until audited financial statements are released
Correct Answer: C
Rationale: Investors value expected future cash flows relative to their timing and risk. An acquisition can
substantially increase sales while still destroying value if the acquiring company pays too much, expected
synergies are weak, integration risks are high, or future cash flows do not adequately compensate investors.*
Why the other options are less appropriate: A incorrectly assumes all revenue expansion destroys value. B
cannot be concluded from the price reaction. D ignores the forward-looking nature of security markets.
Exam Strategy: Never equate company growth automatically with shareholder wealth creation.
Finance Pearl: An acquisition creates value only when the value of benefits obtained exceeds the
economic price paid.
Question 7
The board wants to reduce the likelihood that executives will sacrifice long-term firm value merely to meet a
one-year earnings target. Which compensation structure would most directly help align managerial and
shareholder interests?
A. A substantial component of compensation tied to long-term equity value with an appropriate vesting
horizon
B. A guaranteed annual bonus independent of performance
C. Compensation based exclusively on current-year sales growth
D. Reimbursement of unlimited managerial discretionary expenditures
Correct Answer: A
Rationale: Long-term equity-linked compensation can encourage executives to internalize the effect of their
decisions on shareholder wealth. Longer vesting periods may reduce incentives to manipulate short-term
results at the expense of sustainable value.*
Why the other options are less appropriate: B provides weak performance alignment. C can motivate managers
to increase sales even when margins or value decline. D can increase agency costs.
, Exam Strategy: Effective incentive systems usually connect managerial rewards to long-term value, not
one-dimensional short-term metrics.
Finance Pearl: Incentive design matters because managers often optimize the metric on which
compensation depends.
Question 8
A highly profitable corporation repeatedly experiences difficulty paying suppliers because most sales are
made on generous credit terms and inventory levels have increased rapidly. Which financial management
function should receive the most immediate attention?
A. Dividend clientele analysis
B. Capital structure optimization
C. Long-term acquisition policy
D. Working-capital management
Correct Answer: D
Rationale: Working-capital management focuses on short-term assets and liabilities, including cash,
receivables, inventory, accounts payable, and other near-term obligations. A company may be profitable on an
accrual basis yet experience severe liquidity pressure if cash is tied up in receivables and inventory.*
Why the other options are less appropriate: A concerns shareholder payout preferences. B focuses mainly on
long-term financing. C involves long-term investment strategy rather than immediate liquidity.
Exam Strategy: When you see cash, receivables, inventory, and suppliers, think working capital.
Finance Pearl: Profitability does not guarantee liquidity.
Question 9
Why is maximization of current accounting profit generally an inferior corporate objective to maximization
of firm value?
A. Accounting profit completely ignores revenue
B. Accounting profit may fail to reflect adequately the timing, risk, and cash-flow consequences of decisions
C. Firm value is determined exclusively by current dividends
D. Accounting profit always exceeds operating cash flow
Correct Answer: B
Rationale: Value depends on the amount, timing, and risk of expected cash flows. Accounting profit is based on
accrual conventions and may not fully capture these dimensions. Two alternatives producing identical
accounting income can have substantially different economic values.*
, Why the other options are less appropriate: A is clearly false because revenue is a central component of
accounting income. C is too restrictive because value reflects expected future distributions and cash flows. D is
not universally true.
Exam Strategy: Value questions revolve around cash flow + timing + risk.
Finance Pearl: Accounting data is useful, but corporate finance ultimately converts information into
estimates of economic value.
Question 10
Shareholders authorize executives to make operating and investment decisions on their behalf. Under
agency theory, which description is correct?
A. Shareholders are principals, while managers are agents
B. Managers are principals, while shareholders are agents
C. Both managers and shareholders are creditors
D. Shareholders become agents only when the firm issues debt
Correct Answer: A
Rationale: Shareholders supply ownership capital and delegate decision-making authority to managers. Thus,
shareholders are principals and managers are their agents. The separation can improve specialization but also
creates the possibility of agency conflicts.*
Why the other options are less appropriate: B reverses the relationship. C misclassifies both parties. D has no
basis in standard agency theory.
Exam Strategy: Owner = principal; delegated decision-maker = agent.
Finance Pearl: Modern corporate governance exists partly to manage the consequences of this separation.
Question 11
A corporation has already spent $6 million investigating a possible production facility. Updated projections
indicate that constructing the facility today would cost another $40 million but the present value of its
future incremental cash flows is only $36 million. What should management do?
A. Build because abandoning the project wastes the original $6 million
B. Build because total expected cash inflows exceed zero
C. Build if the original feasibility study was approved by the board
D. Reject the facility because the $6 million is sunk and the remaining investment has negative NPV
Correct Answer: D
Rationale: The $6 million has already been incurred and cannot be recovered regardless of the current
decision, making it a sunk cost. The relevant decision compares the incremental $40 million construction cost
