A Method Which States That Each Project Is Assumed to Be

question 51

Multiple Choice

A method which states that each project is assumed to be replaced at the end of its economic life by an identical project is:

• A)the chain of replacement assumption.
• B)the equivalent annual value assumption.
• C)the constant chain of replacement assumption.
• D)none of the given options.

Comprehend the benefits and drawbacks of bootstrapping for entrepreneurs and startups.

Identify the various models of crowdfunding and their characteristics.

Recognize the significance of the “3 Fs” in early-stage financing.

Understand the criteria and motivations of various participants in crowdfunding platforms.

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Definitions:

Fair Value

A measure of the estimated market price of an asset or liability, reflecting what a willing buyer would pay a willing seller in an arm's length transaction.

Non-Controlling Interest

The portion of equity interest in a subsidiary not attributable to the parent company.

Unrealized Intercompany Profits

Profits that arise when companies within the same group sell goods or services to each other at a profit, not realized until sold to an external party.

Equity Method

A financial accounting technique where an investment's value in the investor's books is influenced by the investee's profitability and other changes in their equity.