The Stand-Alone Principle Focuses on the Project's Own Cash Flows

question 84

True/False

The stand-alone principle focuses on the project's own cash flows, uncontaminated by cash flows from the firm's other activities.

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Definitions:

Independent

Not influenced or controlled by others; capable of thinking or acting for oneself.

Standard Deviations

A statistical measure indicating the dispersion or spread of a set of numbers from their mean; it shows how much variation there is from the average.

Independent

Not influenced by or subject to another, capable of thinking or acting for oneself.

Standard Deviations

An estimator of the dispersion level or variability in a sequence of numbers.