Important Points to Remember While Estimating Cash Flows of Projects

question 77

Multiple Choice

Important points to remember while estimating cash flows of projects are:
I. only cash flow is relevant
II. always estimate cash flows on an incremental basis
III. be consistent in the treatment of inflation

• A) I only
• B) I and II only
• C) II, and III only
• D) I,II, and III

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Definitions:

Composition

The process of combining two functions by applying one function to the results of another.

Function

A relation between sets that assigns to each element of a set exactly one element of another set.

Composition

The process of combining two functions in such a way that the output of one function becomes the input of another.

Function

A relation between a set of inputs and a set of permissible outputs, often defined by an equation.