The Total NPV of a New Plant Is Equal to the NPV

question 42

True/False

The total NPV of a new plant is equal to the NPV of the new plant plus the change in the present value of existing plants due to the impact of the new plant.

---

Definitions:

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Supplies Used

The cost of materials and supplies consumed during an accounting period in the course of operations.

Supplies Account

An account used in accounting to track the cost of supplies spent over a specific period.