In pro forma analysis, what determines whether or not an account on the
balance sheet or income statement is relevant to a project?
The projected causes an account to change, then it is revelant.
2. How can you determine if a cash flow is incremental to a project?
The cash flow will disappea...
9. Which one of these is a correct formula for OCF, assuming there is no
interest expense?
✓ Net income + depreciation
10. Manor's purchases some equipment in preparation for a new project.
Which of these are time zero cash flows for that project? Select all that apply
✓ Purchase price of the equipment
✓ Installation and initial testing costs
✓ Shipping costs to have the equipment delivered
11. What types of activities related to a project's fixed assets can create a
cash flow for the final year of a project? Select all that apply.
✓ Selling the project's equipment
✓ Scrapping equipment that has a positive book value but no market
value
✓ Trading in the projects' equipment on new equipment for other
projects.
12. How is the gain or loss on a sale of equipment determined?
✓ Gain (loss) = Market Value - Book Value
Master01 | October, 2024/2025 | Latest update
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