Capital Budgeting Projects Typically Assume That All Cash Flows Transpire

question 96

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 simplifies the analysis and the resulting errors are usually small compared with the errors in forecasting future cash flows.
• D) most corporations collect their cash at the end of the year.

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Definitions:

Interconnections

Linkages or networks between different systems, machines, or concepts enabling them to work together or affect each other.

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Niche Market

A specific, focused segment of the market that is addressed by tailoring products or services to fit its particular needs.

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Online platforms that enable users to create profiles, connect with friends and family, and share content or interests.