(a) Identify each of the following cash flow to indicate whether it is a benefit, a disbenefit, or a cost. (i) (ii) A project manager is constructing a large water dam but incurs a budget shortage. Hence he purchases less expensive turbines with a shorter maintenance cycle. The end result is less project cost, but higher operating cost. The project manager purchased less expensive turbines with a shorter maintenance cycle
(a) Identify each of the following cash flow to indicate whether it is a benefit, a disbenefit, or a cost. (i) (ii) A project manager is constructing a large water dam but incurs a budget shortage. Hence he purchases less expensive turbines with a shorter maintenance cycle. The end result is less project cost, but higher operating cost. The project manager purchased less expensive turbines with a shorter maintenance cycle
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Q2
(a)
Identify each of the following cash flow to indicate whether it is a benefit, a
disbenefit, or a cost.
(i)
(ii)
A project manager is constructing a large water dam but incurs a budget
shortage. Hence he purchases less expensive turbines with a shorter
maintenance cycle. The end result is less project cost, but higher operating
cost.
The project manager purchased less expensive turbines with a shorter
maintenance cycle.
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