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  3. Study Set
    Principles of Corporate Finance
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    Exam 6: Making Investment Decisions With the Net Present Value Rule
  5. Question
    Important Points to Remember While Estimating the Cash Flows of a Project
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Important Points to Remember While Estimating the Cash Flows of a Project

Question 3

Question 3

Multiple Choice

Important points to remember while estimating the cash flows of a project are:
I.Only cash flow is relevant.
II.Always estimate cash flows on an incremental basis.
III.Be consistent in the treatment of inflation.


A) I only
B) I and II only
C) II and III only
D) I,II,and III

Correct Answer:

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