The present value of the expected net cash flows of all the projects undertaken by a firm will most likely exceed the present value of the firm's expected net profit after tax, because:
A. income is reduced by taxes paid, but cash flow is not.
B. there is a greater probability of realizing the projected cash flows than the forecasted income.
C. income is reduced by dividends paid, but cash flow is not.
D. income is reduced by depreciation charges, but cash flows are not.
E. cash flows lead to changes in net working capital, but sales do not.
Answer: D
You might also like to view...
In a SMART sales call objective, the "M" refers to the fact that the objective should:
A. maximize the customer's order size. B. manage time wisely. C. move the prospect to buy. D. be measurable. E. minimize the cost to the customer.
All else being equal, if sales revenue doubles, variable costs will:
A. increase on a per unit basis. B. increase in total. C. decrease in total. D. decrease on a per unit basis.
A(n) ________ examines the source address, destination address, and other data of a message and determines whether to let that message pass
A) encrypted firewall B) internal malware C) packet-filtering firewall D) perimeter shareware
In new product development process, the product development stage typically involves:
A. creating a marketing plan for the final product. B. introducing product prototypes to test markets. C. commercializing the new product. D. testing the feasibility of product ideas.