Consider the Following Two Projects

question 26

Multiple Choice

Consider the following two projects:

The net present value (NPV) of project A is closest to ________.

• A) 20.5
• B) 22.5
• C) 25.6
• D) 51.2

Evaluate the impact of dividends, profits, losses, and other adjustments on the carrying amount of an investment.

Recognize the conditions under which significant influence is presumed and its indicators.

Determine the effects of inter-entity transactions on financial statements and the importance of deferred tax considerations.

Understand the treatment of goodwill and impairment in the context of equity accounting.