3) Which of the following statements correctly relates to project appraisal?A) Changes in working capital as a result of implementing a project should be included in the project appraisal.B) The costs of surveys and feasibility studies incurred prior to the decision to implement a project should be included in the project appraisal, as they are a cost of the project.C) The effect of a new project on other parts of a business is irrelevant when trying to decide whether to go ahead with the new project.D) Depreciation is a legitimate cost of a project and should be included in a project appraisal.

Several statements have been given about project appraisal. We have to find the one that is correct.

Answered: Which of the following statements…

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 2QE

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3) Which of the following statements correctly relates to project appraisal?

A) Changes in working capital as a result of implementing a project should be included in the project appraisal.
B) The costs of surveys and feasibility studies incurred prior to the decision to implement a project should be included in the project appraisal, as they are a cost of the project.
C) The effect of a new project on other parts of a business is irrelevant when trying to decide whether to go ahead with the new project.
D) Depreciation is a legitimate cost of a project and should be included in a project appraisal.

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