The Cash Flows Used in Capital Budgeting Calculations Are Based

question 69

Multiple Choice

The cash flows used in capital budgeting calculations are based on:

• A) historical estimates.
• B) forecasts of future cash revenues, expenses, and investment outlays.
• C) forecasts of net income.
• D) forecasts of retained earnings available for financing projects.

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Definitions:

Confidence Level

The probability, expressed as a percentage, that the result of an experiment or study will fall within a specified range of values.

Confidence Interval

An interval of values, calculated from samples, that probably includes an undetermined population statistic, at a designated level of certainty.

Ordinal Data

A type of categorical statistical data type that involves order or ranking of the values but not the exact difference between them.

Weight

A measure of the gravitational force exerted on an object, typically measured in pounds or kilograms.