How Are the Following Items Used in the Calculation of the Net

question 94

Multiple Choice

How are the following items used in the calculation of the net present value of a proposed project? (Ignore income tax considerations.)
$$\begin{array} { | l | l | } \hline \text { Depreciatim Expense } & \text { Salvage Value } \\\hline \text { A) Include } & \text { Include } \\\hline \text { B) Include } & \text { Exclude } \\\hline \text { C) Exclude } & \text { Include } \\\hline \text { D) Exclude } & \text { Exclude } \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Good Faith

Acting with honesty, fairness, and sincerity in transactions and legal matters without intent to defraud or seek unfair advantage.

Honesty in Fact

A standard of conduct that denotes a sincere, honest intention or belief, without any intent to deceive.

Performing Duties

The act of carrying out responsibilities or tasks that are part of one's job or role.

Partial Deliveries

In commercial transactions, the act of delivering a portion of goods distinct from the total quantity stipulated in a contract, often subject to agreement by the involved parties.