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Which of the following statements is incorrect regarding cash flows determination for a typical capital budgeting process? A. All cash flows must be after-tax figures.
Which of the following statements is incorrect regarding cash flows determination for a typical capital budgeting process?
A. All cash flows must be after-tax figures.
B. Infusion of new net working capital should be duly accounted for as a positive initial cash flow.
C. Salvage value is recognized as a positive cash flow at the end of the projects life.
D. Although difficult to estimate, the amounts of revenue erosion (cannibalization) or lost opportunities due to the project in question should be included as negative cash flows.
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