Which of the following statements are true of the relevant cash flow of a project? More than one answer may be correct. Multiple select question. It is defined in terms of the increments to a firm’s existing cash flow. It is a change in the firm’s overall future cash flow. Any cash flow that exists regardless of whether or not a project is undertaken is a relevant cash flow. It is defined as the sum of operating and investing cash flows.

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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Which of the following statements are true of the relevant cash flow of a project? More than one answer may be correct.

Multiple select question.

It is defined in terms of the increments to a firm’s existing cash flow.

It is a change in the firm’s overall future cash flow.

Any cash flow that exists regardless of whether or not a project is undertaken is a relevant cash flow.

It is defined as the sum of operating and investing cash flows.

 

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