Use the Following Two Statements to Answer This Question

question 101

Multiple Choice

Use the following two statements to answer this question:
I.Expansion projects are projects that would add something extra to the firm in terms of sales or cost savings.The incremental cash flows arising from such investment decisions are the new cash flows.
II.Replacement projects are projects that involve the replacement of an existing asset with a new one.The incremental cash flows arising from such investment decisions are the new operating expenses.

• A)I and II are correct.
• B)I and II are incorrect.
• C)I is correct, II is incorrect.
• D)I is incorrect, II is correct.

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Definitions:

Paraphrasing

The act of rewording or rephrasing text or speech to provide clarity or a different perspective.

Closed Question

A closed question is designed to elicit a short, straightforward answer, often "yes" or "no," making it easier to analyze or categorize responses.

Counseling

A professional guidance process assisting individuals, families, or groups in resolving personal or psychological problems.

Understand Problems

The process of comprehending the nature, significance, and solutions of issues or challenges.