In calculating the incremental after-tax cash flows associated with a particular investment, the firm must consider many types of cash flows. Select the incremental cash flow types below that the firm would not incorporate directly into their incremental after-tax cash flow estimates. A) revenues B) operating costs C) sunk costs D) net working captial E) opportunity costs F) financing costs
In calculating the incremental after-tax cash flows associated with a particular investment, the firm must consider many types of cash flows. Select the incremental cash flow types below that the firm would not incorporate directly into their incremental after-tax cash flow estimates. A) revenues B) operating costs C) sunk costs D) net working captial E) opportunity costs F) financing costs
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 2MCQ: To make a capital investment decision, a manager must a. estimate the quantity and timing of cash...
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In calculating the incremental after-tax cash flows associated with a particular investment, the firm must consider many types of cash flows. Select the incremental cash flow types below that the firm would not incorporate directly into their incremental after-tax cash flow estimates.
A) revenues
B) operating costs
C) sunk costs
D) net working captial
E) opportunity costs
F) financing costs
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