The Present Value of the Expected Net Cash Inflows for a Project

question 42

Multiple Choice

The present value of the expected net cash inflows for a project will most likely exceed the present value of the expected net profit after tax for the same project because

• A) Income is reduced by taxes paid, but cash flow is not.
• B) There is a greater probability of realising the projected cash flow than the forecasted income.
• C) Income is reduced by dividends paid, but cash flow is not.
• D) Income is reduced by depreciation charges, but cash flow is not.
• E) Cash flow reflects any change in net working capital, but sales do not.

---

Definitions:

Autonomic Reflexes

Involuntary bodily functions mediated by the autonomic nervous system, such as heart rate, digestion, and respiratory rate.

CNS

Central Nervous System, the part of the nervous system consisting of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

ANS Responses

Physiological reactions mediated by the autonomic nervous system, controlling involuntary functions like heart rate and digestion.

Hypothalamus

A region of the brain that regulates many bodily functions, including hunger, thirst, sleep, and body temperature.