Question
When making a capital budgeting decision, which of the following statements is most correct concerning the cash flows to include in the evaluation? A. Depreciation
When making a capital budgeting decision, which of the following statements is most correct concerning the cash flows to include in the evaluation? A. Depreciation should be included in the cash flows of a project, but the tax shield generated by the depreciation should not be included. B. Interest expense for the funds invested in a project should be included in the cash flows of the project. C. Sunk costs should not be included in the cash flows of a project. D. Opportunity costs should not be included in the cash flows of a project. E. Allocated costs should always be included in the cash flows of a project.
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