The Cash Flows of a Project Should

question 26

Multiple Choice

The cash flows of a project should:

• A)be computed on a pretax basis.
• B)include all sunk costs and opportunity costs.
• C)include all incremental and opportunity costs.
• D)be applied to the year when the related expense or income is recognized by GAAP.
• E)include all financing costs related to new debt acquired to finance the project.

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Definitions:

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