Capital Budgeting Relies on Cash Inflows and Outflows as Preferred

question 35

Multiple Choice

Capital budgeting relies on cash inflows and outflows as preferred inputs for calculations because

• A)managers prefer to use cash figures rather than accounting figures.
• B)GAAP does not apply to capital budgeting decisions.
• C)projects require cash paid out and firms want to know when cash will be returned.
• D)cash figures are easier to calculate than accounting figures.