When analyzing a capital budgeting project, the analyst must include in his calculation all of the following except

A) all revenues and costs in terms of cash flows.
B) only those cash flows that will change if the proposal is accepted (i.e., incremental cash flows).
C) interest payments on debt financing connected with the project.
D) any effect (impact) the acceptance of the project under consideration will have on other projects now in operation.

C

Economics

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Labor market equilibrium occurs at a real wage where the demand for labor exceeds the supply of labor

Indicate whether the statement is true or false

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The Fed's communication:

A. is irrelevant, all that matters is the actions that it takes. B. is often used as a distraction to hide its true agenda. C. is itself an important tool of monetary policy. D. is the single most important tool of fiscal policy.

Economics