Given a Particular Set of Project Cash Flows, Which of the Following

question 40

Multiple Choice

Given a particular set of project cash flows, which of the following statements is correct?

• A)there can be only one NPV for the project.
• B)there can be only one IRR for the project.
• C)there can be more than one NPV for the project.
• D)there can be only one profitability index for the project.

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Definitions:

Full Costing

An accounting method that includes all direct and indirect costs in the price of a product or service.

Carrying Cost

The total costs associated with holding inventory or assets, including storage, insurance, and taxes.

Administrative Costs

Expenses related to the general operation of a business, including salaries of executive officers, legal and clerical salaries, and other general expenses.

Sales Taxes

Taxes imposed by governments on sales of goods and services, typically calculated as a percentage of the retail price paid by the consumer.