According to the Incremental Cash Flow Principle, a Firm Should

Multiple Choice

According to the incremental cash flow principle, a firm should:

A) include variable costs and fixed costs.
B) exclude variable costs and fixed costs in the project's cash flows.
C) include variable costs and exclude fixed costs in the project's cash flows.
D) include sunk costs in the project's cash flows.
E) exclude opportunity costs in the project's cash flows.