Select the incorrect statement from the following. multiple choice actual costs are not relevant in many decisions because actual costs cannot be determined until after the decision has been made. when accumulating the cost of a specific cost object, the indirect costs are allocated to the cost object. actual costs are useful for evaluating managerial performance. the difference between a direct cost and an indirect cost is that a direct cost relates to a given cost object while an indirect cost does not.

Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is: