Which One of the Following Statements Is Correct

question 21

Multiple Choice

Which one of the following statements is correct?

• A)Project analysis should only include the cash flows that affect the income statement.
• B)A project can create a positive operating cash flow without affecting sales.
• C)The depreciation tax shield creates a cash outflow for a project.
• D)Interest expense should always be included as a cash outflow when analyzing a project.
• E)The opportunity cost of a company-owned building that is going to be used in a new project should be included as a cash inflow to the project.

---

Definitions:

Gestures

Movements of parts of the body, especially the hands or head, to express ideas or emotions.

Attire

The clothes or outfit that a person wears.

Proxemics

The study of human use of space and the effects that population density has on behaviour, communication, and social interaction.

Territoriality

refers to the behavior by individuals or organisms to claim a physical area, often defending it against others of the same species.