The Present Value of the Expected Net Cash Inflows for a Project

question 65

Multiple Choice

The present value of the expected net cash inflows for a project will most likely exceed the present value of the expected net profit after tax for the same project because

• A) Income is reduced by taxes paid,but cash flow is not.
• B) There is a greater probability of realizing the projected cash flow than the forecasted income.
• C) Income is reduced by dividends paid,but cash flow is not.
• D) Income is reduced by depreciation charges,but cash flow is not.
• E) Cash flow reflects any change in net working capital,but sales do not.

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Definitions:

Hotel Accommodations

Lodging and room services provided by hotels to travelers, which can vary widely in terms of quality, amenities, and price.

Meals

The food that is prepared and served, typically at regular occasions or times during the day, such as breakfast, lunch, or dinner.

Budgets

Detailed plans that outline expected income and expenditures over a specific period, often used by individuals, organizations, or governments to manage finances.

Marginal Rate

The rate at which one quantity changes relative to a change in another quantity.