Which of the Following Is True Regarding Project Evaluation

question 255

Multiple Choice

Which of the following is true regarding project evaluation?

• A) Financing costs must be included in the statement of cash flows because they are not accounted for elsewhere.
• B) The stand-alone principle calls for evaluation of a project based on its incremental cash flows.
• C) Changes in NWC are not considered incremental cash flows.
• D) When fixed assets are sold at the project end, there are usually no tax consequences of the sale.
• E) Whether straight-line depreciation or CCA is used will have no impact on project NPV.

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Definitions:

Subclasses

Categories that fall under a larger class, often sharing many characteristics with the class but having distinctive features.

Reversible Thinking

The ability to recognize that actions or processes can be undone, leading to the original state or condition.

Centration

A cognitive limitation in early childhood, where a child focuses on one aspect of a situation or object and ignores others.

Formal Operations

The final stage in Piaget's theory of cognitive development, characterized by the ability to think abstractly, reason logically, and manage hypothetical situations.