Which of the Following Statements About Project Cash Flows Is

question 1

Multiple Choice

Which of the following statements about project cash flows is false?

• A)Opportunity costs--e.g., cash flows that would be generated by an alternative project--should be included in your cash flow analysis.
• B)Although most projects involve both financial and non-financial costs and benefits, the non-financial items are typically minor and can be ignored when estimating a project's
• Value.
• C)In order to accurately evaluate a project's effect on value, it is necessary to quantify any non-financial costs and benefits.
• D)Both B and C are false statements.

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Definitions:

Knowingly

Acting with awareness or deliberate intention, often referenced in legal contexts to imply a person had knowledge or should have had knowledge of the implications of their actions.

Ratification

The act of formally confirming or approving an agreement, often after the agreement is initially made, to make it officially valid.

Fiduciary Duty

An obligation to act in the best interest of another party, such as that of a trustee towards a beneficiary.

Vicarious Liability

Refers to a legal principle where an entity (such as an employer) can be held responsible for the actions or omissions of another person (like an employee), under certain conditions.