In Estimating Project Cash Flows, ____ Is Generally Excluded

question 177

Multiple Choice

In estimating project cash flows, ____ is generally excluded.

• A)dividends
• B)effects on other parts of the company
• C)proceeds from sales
• D)a and b
• E)a and c

---

Definitions:

Von Neumann-Morgenstern Utility Function

A mathematical representation of an individual's preference over a set of alternatives, based on the assumption of expected utility maximization.

Risk Lover

A person or entity that prefers to take risks, often in pursuit of higher rewards, rather than avoiding them.

Probability

A measure of the likelihood of a particular event or outcome occurring, expressed as a number between 0 and 1.

Expected Utility Maximizer

An individual who makes choices under uncertainty to maximize their expected level of satisfaction, based on the probabilities of different outcomes.