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:

Proportion

A part or segment of a whole, often expressed as a fraction, percentage, or ratio.

3-Month Sales

A measure of the total sales or revenue generated by a company or product within a three-month period.

Video Sales

The commercial activity of selling video content, including physical media like DVDs or digital downloads and streaming.

Proportionate Costs

Expenses that vary in relation to the level of activity or volume of output in a business, similar to variable costs.