Which One of the Following Statements Is Correct

question 85

Multiple Choice

Which one of the following statements is correct?

• A) Project analysis should only include the cash flows which affect the statement of comprehensive income.
• B) A project can create a positive cash flow from operations without affecting the sales level of a firm.
• C) For the majority of projects that increase sales, there will be a cash outflow related to net working capital that occurs at the end of the project.
• D) Interest expense should always be included as a cash outflow when analyzing a project.
• E) The opportunity cost of a company-owned building that is going to be used in a new project should be included as a cash inflow to the project.

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