Capital Budgeting Projects Typically Assume That All Cash Flows Transpire

Multiple Choice

Capital budgeting projects typically assume that all cash flows transpire at the end of the year.The reason for this is that:

A) less tax liability results from this practice.
B) balance sheets are prepared at the end of the year.
C) it simplifies the analysis and the resulting errors are usually small compared with the errors in forecasting future cash flows.
D) most corporations collect their cash at the end of the year.