The Cash Flows of a Project Should

question 336

Multiple Choice

The cash flows of a project should:

• A) Be computed on a pre-tax basis.
• B) Include all sunk costs and opportunity costs.
• C) Include all incremental costs, including opportunity costs.
• D) Be applied to the year when the related expense or income is recognized by GAAP.
• E) Include all financing costs related to new debt acquired to finance the project.