If a Project Activity Experiences Positive Variation

question 81

Multiple Choice

If a project activity experiences positive variation:

• A)the following activity must be started later than anticipated.
• B)the preceding activity must be started later than anticipated.
• C)the following activity can be started earlier than anticipated.
• D)the preceding activity can be started earlier than anticipated.

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Definitions:

Incremental Cash Flows

The additional cash flow a company generates from a particular investment or project, compared to not undertaking the project.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

MACRS

MACRS, or Modified Accelerated Cost Recovery System, is a method of depreciation in the United States that allows for faster asset expense recovery over time for tax purposes.

Cash Flows

The movement of money into and out of a business or project, considered crucial for gauging its financial health.