What Indicates the Earning Power of a Project

question 99

Multiple Choice

What indicates the earning power of a project?

• A)ROI
• B)Metrics
• C)Best practices
• D)KPI

---

Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset whereby the original cost is reduced equally across each year of its estimated useful life.

Salvage Value

The predicted disposal value of an asset at the conclusion of its usable life.

Net Cash Flows

The amount of cash that is generated or lost over a specific period, considering all cash inflows and outflows from operations, financing, and investing activities.