Multiple Choice
Important points to remember while estimating the cash flows of a project are:
I.Only cash flow is relevant.
II.Always estimate cash flows on an incremental basis.
III.Be consistent in the treatment of inflation.
A) I only
B) I and II only
C) II and III only
D) I,II,and III
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Money that a firm has already spent,or
Q2: Two mutually exclusive projects have the
Q4: Suppose that a project has a depreciable
Q5: RainMan Inc.is in the business of
Q7: Using the technique of equivalent annual
Q9: The principal short-term assets are:<br>i.cash; II)accounts receivable;
Q10: A project requires an initial investment of
Q15: Depreciation expense acts as a tax shield
Q33: A reduction in the sales of existing
Q56: Capital equipment costing $250,000 today has $50,000