A Firm Should Evaluate a Project According to the Incremental

question 86

True/False

A firm should evaluate a project according to the incremental cash flow principle and should incorporate only negative effects on other existing projects.

---

Definitions:

Submaterialman

An individual or business that supplies materials to a subcontractor, assisting in fulfilling the subcontractor's obligations.

Statute

A written law passed by a legislative body, governing society and establishing rules that constituents must follow.

Foreclosure

The legal process by which a lender takes control of a property used as collateral for a loan that has not been repaid according to the terms of the mortgage or deed of trust.

Mortgagor

The owner of the property that has been mortgaged or pledged as security for a debt.