In proper capital budgeting analysis we evaluate incremental _____ cash flows.

A) accounting
B) operating
C) before-tax
D) financing

Question

In proper capital budgeting analysis we evaluate incremental _____ cash flows.A) accountingB) operatingC) before-taxD) financing

Joshua Gainey · Accepted Answer

Final Answer : B, Explanation :  In proper capital budgeting analysis, the focus is on evaluating incremental operating cash flows, which are the additional cash flows a company expects to generate from a new project or investment, excluding any financing costs or accounting profits. These cash flows are crucial for assessing the viability and profitability of the project.

In proper capital budgeting analysis we evaluate incremental _____ cash flows.

A) accounting
B) operating
C) before-tax
D) financing

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Learning Objectives

Learning Objectives

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