Which One of the Following Can Be Completely Ignored When

question 24

Multiple Choice

Which one of the following can be completely ignored when analysing a project?

• A)depreciation
• B)taxes
• C)net working capital
• D)sunk cost
• E)erosion

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Definitions:

Interest Rate

The percentage charged on a loan or paid on deposits over a specific period of time, reflecting the cost of borrowing or the return on savings.

Consumes

The act of using up a resource or goods in the process of satisfying human needs or wants.

Utility Function

A utility function is a mathematical representation that assigns a level of utility or satisfaction to combinations of goods and services consumed.

Income

Refers to the income earned, either periodically or consistently, from employment or investment ventures.