Which One of the Following Is Not a Basic Principle

question 21

Multiple Choice

Which one of the following is not a basic principle for estimating a project's net cash flows?

• A)Sunk costs are relevant.
• B)Cash flows should be estimated on an incremental basis.
• C)Cash flows should be estimated on an after-tax basis.
• D)Opportunity costs are relevant.

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Definitions:

Literal Meaning

The basic or primary meaning of a word or phrase, without metaphor or exaggeration.

Obscure Definition

A description or explanation that is not clear, difficult to understand, or not well known.

Abstract Terms

Words that represent concepts or ideas rather than tangible objects or actions, often subjective and open to interpretation.

Poetic Imagery

The use of vivid or figurative language to represent objects, actions, or ideas in literature, particularly in poetry, to evoke a mental image or sensory experience.