Benefits Expected from Proposed Capital Expenditures ________

Multiple Choice

Benefits expected from proposed capital expenditures ________.

A) must be on a pre-tax basis because it provides the true position of profits by the firm
B) must be on an after-tax basis because no benefits may be used until tax claims are satisfied
C) may be valued either on pre-tax or after-tax basis based on the size of the firm
D) are independent of interest and taxes