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The accounting department is now evaluating a potential project and an analyst is calculating the OCF for the project, which of the following statements are
The accounting department is now evaluating a potential project and an analyst is calculating the OCF for the project, which of the following statements are correct? 1) Since depreciation is a non-cash item, an error in the depreciation calculation would not affect the final result. 11) If the variable cost per unit is overstated, the OCF will be under-estimated. III) If the cash balance is overstated in the calculation, the OCF will be under- estimated. IV) If fixed costs are omitted, the OCF will be over-estimated. II, IV only. IV only. I, IV only. III, IV only
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