We can identify the cash costs and cash inflows to a company that will result from a project. These could be called "direct inflows and outflows," and the net difference is the direct net cash flow. If there are other costs and benefits that do not flow from or to the firm, but to other parties, these are called externalities, and they need not be considered as a part of the capital budgeting analysis.

Answer the following statement true (T) or false (F)


False

Business

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In FTC v. Procter and Gamble, the Supreme Court held that Procter and Gamble could not merge with Clorox because Procter and Gamble had too much of a share of the bleach market already

a. True b. False Indicate whether the statement is true or false

Business

Experience curves and the PIMS model both seem to imply that market share is an essential ingredient of a winning strategy. Does that mean that a company with a low market share has no way of running a profitable business?

What will be an ideal response?

Business

All of the following are true of large groups EXCEPT

A. large groups have formalized interactions. B. large groups set agendas. C. large do not set many rules or regulations. D. large groups follow parliamentary procedures. E. large groups offer more social interactions.

Business

The financial activities of a business and the financial activities of the owners should be

A. combined in the firm's accounting records. B. reported in different parts of the firm's accounting records. C. kept totally and completely separate. D. combined only if the owner wants them to be.

Business