Posted by zeeshan on Wednesday, August 4, 2010 at 12:55pm.
Question No 1:
If two projects are _______________, the fact that they have unequal lives will not affect the analysis.
Question No 2:
Mr. A, as a financial consultant, has prepared a feasibility report of a project for XYZ Company that the company is planning to undertake. He has suggested that the project is feasible. The consultancy fee paid to Mr. A will be considered as:
c)Both sunk cost and opportunity cost
d)Neither sunk cost nor opportunity cost
Business finance - Anonymous, Tuesday, February 16, 2016 at 4:49am
As a general rules, the unequal life issue never arises for independent projects, but it can be an issue when we compare mutually excluxive projects with significant different lives.
cost that has already been incurred and cannot be recouped and therefore should not be considered in
an investment decision
•e.g. a consultant’s fee for evaluating the option of launching a new product
Answer This Question
More Related Questions
- financial management - "NPV and IRR methods result in conflicts only if mutually...
- Math, Statistics - If P(A)=.3 and P(B)=.45 find… P(A or B) if A and B are 1)...
- finance - BBA307: Finance Exercise 8A Assignment 8.1 Assignment 8.1: Capital ...
- finance - You have just graduated and one of your favorite courses was Financial...
- Finance - Assignment 8.1: Capital Budgeting Application You have just graduated...
- Statistics - 1. If P(A) = 0.4 P(B) = 0.2 and P(A or B) = 0.5, find the sum of P(...
- ENGL - These three questions I am having difficulty in solving. Can you help me ...
- Algebra 1 - Will you please check my work? :) Choose ALL (if any) applicable ...
- Statistics - *Give all probabilities to two decimal places. Three daily ...
- chemistry - Identify the independent, dependent and controlled variables: a)Does...