Question
True, false, or uncertain and why. The grade will depend on the quality of your explanation. 1. When constructing the incremental cash flow profile of
True, false, or uncertain and why. The grade will depend on the quality of your explanation. 1. When constructing the incremental cash flow profile of a project you need to compare the situation with the project with the present situation before the project is undertaken. 2. Increases in the value of any land used by a project should always be included in the benefits of a project. 3. Suppose the debt service capacity ratio, DSCR, is satisfactory for the entire period that the debt is outstanding. Then it must be the case that each of the annual debt service coverage ratios, ADSCR, during this period must also be satisfactory. 4. An incremental cost-effectiveness ratio measures the total effectiveness of a program as compared to doing nothing. 5. In a cost-effectiveness analysis, reducing the discount rate always lowers the ratio of the cost per unit of effectiveness.
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