A type of project whose cash flows would not depend on each other is classified as ____________?
Correct answer: B. independent projects
- A. project net gain
- B. independent projects
- C. dependent projects
- D. net value projects
Explanation
Independent projects have cash flows and acceptance decisions that do not depend on one another, so accepting one does not automatically affect the others. Dependent or mutually related projects require joint consideration.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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