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1 FINANCE MCQS

A project whose cash flows do not depend on other projects is called ____________?

  • Project net gain
  • Independent projects
  • Dependent projects
  • Net value projects
Correct Answer: B. Independent projects

Detailed Explanation

An independent project is one that can be accepted or rejected without affecting the decision of other projects. Its cash flows are separate and do not rely on the acceptance, rejection, or performance of other projects. These projects are evaluated based on their own merits, using methods such as NPV or IRR in capital budgeting.

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