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Author Question: Which of the following statements is correct? (Read 72 times)

M1ch3a

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Which of the following statements is correct?

Only incremental cash flows are relevant in project analysis, and the proper incremental cash flows are the reported accounting profits, which form the best basis for investor and managerial decisions.


If a terminal loss or CCA recapture could occur at the conclusion of the business, no subsequent cash flows would be received.


It is unrealistic to believe that increases in net operating working capital required at the start of an expansion project can be recovered at the project’s completion. Working capital like inventory is almost always used up in operations. 


Changes in net operating working capital refer to changes in current assets and current liabilities, not to changes in long-term assets and liabilities, hence they are not considered in a capital budgeting analysis.



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Marked as best answer by M1ch3a on Aug 7, 2023

zubair1583

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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M1ch3a

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


abro1885

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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