Evaluating Several Possible Cash Flow Scenarios Gives a Feel for Variability

question 82

True/False

Evaluating several possible cash flow scenarios gives a feel for variability of a project's NPV.

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Definitions:

Going Concern Principle

An accounting assumption that a company will continue operating and not go bankrupt or be liquidated in the foreseeable future.

Straight-Line Deprecation

A method of calculating the depreciation of an asset, dividing its cost by the number of years it is expected to be useful.

Book Value

The net value of a company's assets, found by deducting total liabilities and intangible assets from total assets.

Salvage Value

The foreseen remaining value of an asset at the culmination of its viable life.