A contract is considered to be supported by legal value if the promisor suffers a legal detriment
Indicate whether the statement is true or false
FALSE
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When a statement of cash flows is prepared using the indirect method,
A) net income is the starting point in determining cash flows from operations. B) cash paid for dividends is not included. C) the increase in cash is different than when the direct method is used. D) the amount of cash collected from customers is calculated.
When a work sheet is complete, the adjustment columns should have
A) total credits greater than total debits if a net income was earned B) total debits greater than total credits if a net loss was incurred C) total debits greater than total credits if a net income was earned D) total debits equal total credits
In the ________, members are selected because they are experts or have relevant information to share and the time available to do so.
A. Delphi decision-making process B. program evaluation and review technique C. critical path method D. dialectic decision-making process
What is the Profitability Index of the Boeing 787 Dreamliner project? The Boeing 787-8 can carry 230 passengers up to 8,200 nautical miles at a cruising speed of mach 0.85
The Dreamliner is more comfortable for passengers because of higher cabin humidity. Boeing completed construction its assembly plant in Everett Washington in December 2007 at a total cost of $7B. Boeing has secured sales of 865 aircraft over the period 2008-2012 for total proceeds of $138.4B ($160M per aircraft). The cost of building each plane is $140M. Assume that sales (and costs) occur in December of each year. Assume that sales are spread evenly across the five years from 2008-2012. The project cash flows are shown in the table, below. What is the Profitability Index of the project if Boeing's cost of capital is 10%? Calculate the index as of December 1, 2007. Ignore taxes. Year Capital Investment Annual Sales Annual Revenues Annual Costs Cash Flows 2007 -$7,000M -$7,000 2008 173 $27,680 $24,220 $3,460 2009 173 $27,680 $24,220 $3,460 2010 173 $27,680 $24,220 $3,460 2011 173 $27,680 $24,220 $3,460 2012 173 $27,680 $24,220 $3,460 A) -1.52 B) -0.44 C) 1.06 D) 1.87 E) 2.43