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Which of the Following Statements Is NOT True Regarding the Financial

Question 5

Multiple Choice

Which of the following statements is NOT true regarding the financial statement approach to evaluating financial alternatives?


A) it includes a calculation of the anticipated revenues and expenses of the alternatives
B) it includes a discounting of some of the alternatives' revenue and expense flows
C) it implicitly defines project riskiness as the project's effect on liquidity
D) it includes risk by portraying the company's ability to pay near-term obligations

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