A Particular Project Might Have Very Uncertain Cash Flows, Hence

question 18

True/False

A particular project might have very uncertain cash flows, hence a highly uncertain NPV and IRR, yet it may not have high market risk.

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Definitions:

Bonus Dividends

Additional dividends paid to shareholders, above regular dividends, typically issued in the form of extra shares.

Revaluation

An adjustment of the carrying value of an asset or liability to its current fair value.

Consolidated Statement

A financial statement that presents the financial position and results of operations of a parent and its subsidiaries as if they were a single economic entity.

General Reserve

Funds set aside by a company from its profits for general unspecified future needs or to strengthen the company's financial position.