Which of the Following Is (Are)a Basic Principle(s)when Estimating a Project's

question 30

Multiple Choice

Which of the following is (are) a basic principle(s) when estimating a project's cash flows?

• A) cash flows should be measured on a pre-tax basis
• B) cash flows should ignore depreciation since it is a non-cash charge
• C) only direct effects of a project should be included in the cash flow calculations
• D) cash flows should be measured on an incremental basis
• E) all of the above

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Definitions:

Rescission

The revocation, cancellation, or repeal of a contract, returning the parties to the positions they occupied before the contract was made.

Damages

Monetary compensation awarded by a court to a plaintiff for losses or injuries suffered as a result of another’s actions.

Contract

A contract is a legally binding agreement between two or more parties that outlines obligations and benefits for the parties involved.

Remedy

Legal means or measures available to a party to enforce a right or redress a harm.