Author Question: Ashton is working on a project at PowerTek Inc, a well-known multinational corporation. He is using ... (Read 84 times)

CharlieWard · **on:** Jul 14, 2018

Ashton is working on a project at PowerTek Inc, a well-known multinational corporation. He is using capital budgeting to estimate the project's future cash flows. He finds that the present value of the estimated future cash flows is greater than the cost of the project. How likely is he to gain approval from the board?
A) He will quite certainly gain approval since the project has a positive net present value.
B) Approval is probable but not likely as he failed to account for the time value of money.
C) He will not gain approval as he failed to consider whether the project is leading edge or not.
D) Approval is probable but not likely as the project has been constructed on estimates instead of facts.

Question 2

Surplus funds of a not-for-profit organization are distributed to members of the board of directors.

Indicate whether the statement is true or false