Capital Budgeting Projects Typically Assume That All Cash Flows Transpire

question 22

Multiple Choice

Capital budgeting projects typically assume that all cash flows transpire at the end of the year. The reason for this is that:

• A) less tax liability results from this practice.
• B) balance sheets are prepared at the end of the year.
• C) it makes forecasting easier for the analyst.
• D)most corporations collect their cash at the end of the year.

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