Which of the Following Rules Are Essential to Successful Cash

question 10

Multiple Choice

Which of the following rules are essential to successful cash flow estimates,and ultimately,to successful capital budgeting?

• A) The return on invested capital is the only relevant cash flow.
• B) Only incremental cash flows are relevant to the accept/reject decision.
• C) Total cash flows are relevant to capital budgeting analysis and the accept/reject decision.
• D) All of the above are correct.
• E) Only answers a and b are correct.

---

Definitions:

Pyloric Stenosis

A condition in infants where the passage from the stomach to the small intestine is narrowed, causing vomiting and weight loss.

Olive-Like Mass

A term often used to describe a palpable lump in the abdominal area, resembling the size and shape of an olive, potentially indicating a medical condition.

Substernal Retraction

A sign of respiratory distress, characterized by inward movement of the area below the breastbone during inhalation.