When Using the Modified Approach to Account for Infrastructures, Expenditures

question 104

True/False

When using the modified approach to account for infrastructures, expenditures to extend the life of the infrastructure assets are not capitalized.

Identify sunk costs and their irrelevance to future financial decisions.

Calculate the financial impact of operational and staffing changes on project cash flows.

Assess the benefits of depreciation tax shields on a project's cash flows.

Understand the relevance of incremental cash flows in capital budgeting.