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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 5QTD
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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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