Preliminary financial feasibility testing deals with: 1) threshold questions concerning the venture's acceptability. 2)...
Preliminary financial feasibility testing deals with:
1) threshold questions concerning the venture's acceptability.
2) solvency testing.
3) estimating the minimum project revenue required to meet investor's criteria.
4) all the above.
Homework Answers
Answer- option (4)
- Financial feasibility testing deals with economic viability of a venture before setting up a business plan.
- It predicts project cost and profit forecast inorder to determine cash flow investment.
- There will be comparison between budgeted cash flow and actual cash flow. So that minimum project revenue can be determine.
- All the will help the management to evaluate the solvency position by calculating debt and equity returns.
Hence all of the above is the correct answer.
All the best for your exam!
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