Question

1. For a given time period in a project life, the incremental net cash flow equals...

1. For a given time period in a project life, the incremental net cash flow equals

a. changes in cash flows for the period relative to baseline projections for the project

b. incremental cash inflows in that period, less incremental cash outflows in that period

c. cash flows in the given period relative to cash flows in the preceeding period

2. Net cash flows from a project are residual. what does this term mean?

a. the term refers to the portion of net cash flows that are left over after cash dividends have been paid to shareholders

b. the net cash flows are cash left over after all other claimants have been paid per terms of their contracts with the form or under tac law


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Homework Answers

Answer #1

1. option B is Correct

the incremental net cash flow = Revenues - outflows- initial cost.

the incremental net cash flow is equal to incremental cash inflows in that period, less incremental cash outflows in that period

2.option B is correct

residual cash flow is calculated by taking net adjusted cash flows for the accounting period ,reported on cash flow statement and subtracting the cost of capital.

Net cash flows from a project are residual. refers to the net cash flows are cash left over after all other claimants have been paid per terms of their contracts with the form or under tac law

Thank You so much

please comment for any further help

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