Which of the Following Statements Generally Apply to the Cash

question 105

Multiple Choice

Which of the following statements generally apply to the cash flows of a financing type project?
I.nonconventional cash flows
II.cash outflows exceed cash inflows prior to any time value adjustments
III.cash for services rendered is received prior to the cash that is spent providing the services
IV.the total of all cash flows must equal zero on an unadjusted basis

• A)I only
• B)I and III only
• C)II and IV only
• D)I, II, and III only
• E)I, II, III, and IV

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Definitions:

Value of the Marginal Product

The extra income produced from the use of an additional unit of input, like capital or labor.

Marginal Product (MP)

The extra output generated from increasing the quantity of a particular input by one, while keeping other inputs unchanged.

Price (P)

The cost necessary to acquire a good or service.

Value of the Marginal Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital, in the production process.