In Estimating Project Cash Flows, ____ Is Generally Excluded

question 177

Multiple Choice

In estimating project cash flows, ____ is generally excluded.

• A)dividends
• B)effects on other parts of the company
• C)proceeds from sales
• D)a and b
• E)a and c

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Definitions:

Marginal Revenue Productivity

The additional revenue generated by hiring one more unit of a factor of production, such as labor.

Profit-maximizing

A strategy or point at which a business reaches the highest possible difference between its total revenues and total costs.

Resources

Inputs or factors used in the production of goods and services, typically categorized into labor, capital, land, and entrepreneurship.

Appliance Manufacturer

A company engaged in the design, production, and sale of electrical or mechanical devices for domestic or commercial use.