Asked by Julianne Marie on Apr 24, 2024
Verified
In estimating project cash flows, ____ is generally excluded.
A) dividends
B) effects on other parts of the company
C) proceeds from sales
D) a and b
E) a and c
Dividends
Payments made by a corporation to its shareholder members, usually derived from the company's profits.
Effects On Other Parts
The impact that changes or actions in one segment or component have on other segments or components within a system or organization.
Proceeds From Sales
The total amount of money received by a company from selling goods, services, or assets.
- Recognize elements that do not directly influence estimates of cash flow, including depreciation and costs of financing.
Verified Answer
BV
Baybay Vilayphone6 days ago
Final Answer :
A
Explanation :
Dividends are generally excluded in estimating project cash flows because they are considered financing decisions, not operating cash flows directly related to the project's performance.
Learning Objectives
- Recognize elements that do not directly influence estimates of cash flow, including depreciation and costs of financing.