Evaluated based on its incremental cash flows

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Reference no: EM132030925

1. Which one of the following principles refers to the assumption that a project will be evaluated based on its incremental cash flows?

Forecast assumption principle

Base assumption principle

Fallacy principle

Erosion principle

Stand-alone principle

2. Scenario analysis is best described as the determination of the:

A. most likely outcome for a project.

B. reasonable range of project outcomes.

C. variable that has the greatest effect on a project's outcome.

D. effect that a project's initial cost has on the project's net present value

Reference no: EM132030925

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