Certain Protected Classes Are Recognized Under Various State Law but Not

question 12

Essay

Certain protected classes are recognized under various state law but not under federal law.  Name them.

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.

Understand the principles of capital budgeting decisions.

Identify and calculate relevant and irrelevant cash flows in capital budgeting.

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Definitions:

Net Operating Income

The profit generated from a business's operations after subtracting operating expenses, but before interest and taxes.

Degree Of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to a change in its sales volume.

Variable Expenses

Expenses that change in proportion to the activity of a business, such as raw material costs or sales commissions.

Fixed Expenses

Expenses that remain constant regardless of production or sales volume, including rent, insurance, and salaries.