A capital budgeting project that calls for a replacement decision:

A) normally does not increase the volume of a firm's operations.
B) results in total cash flows that are equal to incremental cash flows.
C) has no initial period cash flows.
D) None of the above

Incremental Cash Flows

The additional cash flow a business receives from taking on a new project or investment.

Replacement Decision

The evaluation process for determining whether to repair, maintain or replace an asset or piece of equipment.

Volume Of Operations

The scale or magnitude of the business activities that a company carries out in a specific period.