In estimating cash flows, the firm should include:

A) effects on other parts of the company.
B) fixed costs.
C) opportunity costs.
D) a and c
E) a, b, and c

Learning Objectives

• Acquire knowledge on the aspects considered when estimating cash flows for capital investments.
• Understand the importance of opportunity costs in assessing projects.
• Recognize the influence of a project on various sections of the organization and how associated costs are managed.