Two Cardinal Rules That Financial Analysts Should Follow to Avoid

question 48

True/False

two cardinal rules that financial analysts should follow to avoid capital budgeting errors are: (1) in the NPV equation, the numerator should use income calculated in accordance with generally accepted accounting principles, and (2) all incremental cash flows should be considered when making accept/reject decisions.

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Definitions:

DNA

Deoxyribonucleic acid, the molecule that carries genetic information in the cells of living organisms.

Complementary DNA

DNA synthesized from a single-stranded RNA template in a reaction catalyzed by the enzyme reverse transcriptase, often used in cloning or as a probe in physical mapping.

Complementary

Complementary refers to things that enhance or emphasize the qualities of each other when combined.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms.