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Uniform Cash Flows from a Capital Project Are Necessary for Which

question 25

Multiple Choice

Uniform cash flows from a capital project are necessary for which of the following calculations?
I. Net present value
II. Internal rate of return
III. Profitability index


Definitions:

Compensating Balance

A requirement by some banks requiring depositors to maintain minimum cash balances in their bank accounts.

Petty Cash Fund

A special cash fund to pay relatively small amounts.

Bank Checking Account

A bank account that allows individuals and businesses to deposit money and withdraw funds, which can be accessed using checks, automated teller machines (ATMs), and electronic debits.

Cash Equivalents

Highly liquid investments that are usually reported with cash on the balance sheet.

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