Question
Which of the following statements describes the most appropriate treatment of cash flows in capital budgeting? A. Interest costs are included in the projects cash
Which of the following statements describes the most appropriate treatment of cash flows in capital budgeting?
A. Interest costs are included in the projects cash flows to reflect financing costs.
B. A project is evaluated using its incremental cash flows on an after-tax basis.
C. Sunk costs and externalities should not be included in the cash flow estimates.
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1st Edition
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