Uniform cash flows from a capital project are necessary for which of the following calculations?
I $\quad $Net present value
II $\quad $Internal rate of return
III $\quad $Profitability index

Question

Uniform cash flows from a capital project are necessary for which of the following calculations?
 I $\quad $Net present value
II $\quad $Internal rate of return 
III $\quad $Profitability index

Quizplus · Accepted Answer

Uniform cash flows are not a necessary condition for calculating net present value (NPV), internal rate of return (IRR), or profitability index. These calculations can be performed with both uniform and non-uniform cash flows.

Uniform Cash Flows from a Capital Project Are Necessary for Which