Financial Feasibility and Capital Budgeting Quiz
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Questions and Answers

Which statement accurately describes the capital budget?

  • It includes a summary of all anticipated uses of funds (correct)
  • It includes a summary of all anticipated sources of funds
  • It includes a summary of all grants and developer's equity
  • It includes a summary of all equity and debt

    • What does the sources and uses statement show?

  • Where all the funds are used in a project (correct)
  • Where all the sources of funds come from
  • The total amount of excess cash flow available for distribution
  • The total amount of sources and uses of funds

    • What happens if there are more uses of funds than sources of funds?

  • The project will need additional capital to work (correct)
  • The project will not be financially feasible
  • There will be excess cash flow available for distribution
  • The sources and uses must be equal

    • What is the purpose of establishing a project budget for construction?

    <p>To influence design decisions</p> Signup and view all the answers

    What is required for the financial feasibility of a project?

    <p>An objective and conservative capital and operating budget</p> Signup and view all the answers

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