Which of the Following Is a Basic Principle When Estimating

question 89

Multiple Choice

Which of the following is a basic principle when estimating a project's cash flows?

• A) Cash flows should be measured on a pretax basis
• B) Cash flows should ignore depreciation because it is a noncash charge
• C) Only direct effects of a project should be included in cash flow calculations
• D) Cash flows should be measured on an incremental basis

---

Definitions:

Elect

To choose or select someone or something, typically through a vote, for a particular role or position.

Massachusetts General Court

The legislative body of the Commonwealth of Massachusetts, one of the oldest functioning legislatures in the United States.