According to the Incremental Cash Flow Principle, a Firm Should

question 120

Multiple Choice

According to the incremental cash flow principle, a firm should:

• A)include variable costs and fixed costs.
• B)exclude variable costs and fixed costs in the project's cash flows.
• C)include variable costs and exclude fixed costs in the project's cash flows.
• D)include sunk costs in the project's cash flows.
• E)exclude opportunity costs in the project's cash flows.

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Definitions:

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