Incremental Cash Flows Are of Primary Interest in Capital Budgeting

question 90

Multiple Choice

Incremental cash flows are of primary interest in capital budgeting decisions because:

• A)they are more relevant than intangible costs and benefits.
• B)they are able to correct for a portion of the uncertainty due to the long time horizon.
• C)the change in the company's future cash flows is what is being estimated.
• D)they are the easiest cash flows to identify.

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