If Net Cash Flows Have Been Estimated on an After-Tax

question 33

Multiple Choice

If net cash flows have been estimated on an after-tax basis,then:

• A)the opportunity cost of capital is not appropriate.
• B)they should be discounted by the after-tax required rate of return.
• C)they should be discounted by the before-tax required rate of return.
• D)tax cash flows should be added back and net cash flows should be discounted by the before-tax required rate of return.

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Definitions:

Economic Equality

A state within a society where individuals have equal access to wealth, opportunities, and resources, minimizing disparities.

Age Of 65

Often considered the traditional retirement age in many countries, representing a milestone when individuals may qualify for senior citizen benefits and pensions.

Under The Age Of 18

Referring to individuals who are not yet 18 years old, often considered minors under the law.

Legal Authorization

Official permission granted under law or by proper authority for an action or activity to occur.