CFA

Question	Answer
Image: 7d0ee5d2-237d-4e28-bbc4-2cf4ae9e471a (image/png)	Scipio Academy Image: 82c8ebfe-20c6-4c8e-85a7-d7b11ec169ed (image/png)
Scipio Power Corp is considering the development of a new power plant. In order for them to proceed they must ensure they have the proper pollution controls in place such as scrubbers. This is an example of what type of project?	Regulatory, safety, and environmental. ry, safety, and environmental. Regulatory, safety, and environmental.
Justin Otto, CFA Level 1 Candidate, is trying to determine the NPV of a piece of machinery. According to the principles of capital budgeting, what type of monetary flows should his decision be based on?	Cash flows. Analysts should base their decisions on after-tax cash flows, not net income or other accounting concepts.
Analysts should compare the cash flows with the investment to what the investment would have been without the investment is an example of what?	Opportunity costs.

Resource summary

	Created by John Williams8809 about 8 years ago