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

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