Evaluate the Sum Using the Given Information $x _ { 1 } = 0 , x _ { 2 } = 4$

question 68

Multiple Choice

Evaluate the sum using the given information.
- $x _ { 1 } = 0 , x _ { 2 } = 4$ , and $x _ { 3 } = - 4$
$$\sum _ { i = 1 } ^ { 3 } \left( \frac { x _ { i } - 2 } { 2 x _ { i } + 4 } \right)$$

• A) \(\frac { 7 } { 6 }\)
• B) \(- \frac { 11 } { 6 }\)
• C) 0
• D) \(\frac { 5 } { 6 }\)

Recognize the importance of incremental cash flow principles in evaluating projects.

Understand the treatment and implications of depreciation for tax purposes.

Identify the significance of salvage value and recovery of working capital in the final year cash flow of a project.

Approach subjectively estimated cash flows with caution, incorporating conservative and reasonable estimates.