Which of the Following Rules Are Essential to Successful Cash

Multiple Choice

Which of the following rules are essential to successful cash flow estimates,and ultimately,to successful capital budgeting?

A) The return on invested capital is the only relevant cash flow.
B) Only incremental cash flows are relevant to the accept/reject decision.
C) Total cash flows are relevant to capital budgeting analysis and the accept/reject decision.
D) All of the above are correct.
E) Only answers a and b are correct.