One Purpose of Identifying All of the Incremental Cash flOws

question 204

Multiple Choice

One purpose of identifying all of the incremental cash flows related to a proposed project is to:

• A) Isolate the total sunk costs so they can be evaluated to determine if the project will add value to the firm.
• B) Eliminate any cost which has previously been incurred so that it can be omitted from the analysis of the project.
• C) Make each project appear as profitable as possible for the firm.
• D) Include both the proposed and the current operations of a firm in the analysis of the project.
• E) Identify any and all changes in the cash flows of the firm for the past year so they can be included in the analysis.

---

Definitions:

National Labour Market

The supply and demand for labor, where employers seek workers and individuals seek employment, within a country.

Bricks-And-Mortar

Businesses that have physical stores or outlets in the real world, as opposed to online or virtual presence.

Job Descriptions

Documents or statements that outline the tasks, duties, functions, and responsibilities of a specific job position.

Hidden Job Market

Employment opportunities that are not advertised publicly and are typically found through networking, referrals, or direct contact with employers.