This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is correct? (Read 70 times)

M1ch3a

  • Full Member
  • ***
  • Posts: 130
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by M1ch3a on Aug 7, 2023

zubair1583

  • Full Member
  • ***
  • Posts: 175
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.
Answer Preview
Only 39% of students answer this correctly




M1ch3a

  • Member
  • Posts: 130
Reply 2 on: Aug 7, 2023
Gracias!


bimper21

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

For a complete list of videos, visit our video library