Asked by
Benjamin Morgan
on Nov 07, 2024
Verified
For the purpose of performing capital budgeting analysis, cash flows must be incremental.
Incremental
Refers to the additional changes in costs or revenues that result from a business decision.
Capital Budgeting
The process used by companies to evaluate and select long-term investments that are expected to yield the highest returns over time.
Cash Flows
The comprehensive total of funds circulating in and out of a business, markedly affecting its ability to liquidate assets.
- Recognize the constituents of incremental cash flow for capital budgeting applications.
Verified Answer
AL
Learning Objectives
- Recognize the constituents of incremental cash flow for capital budgeting applications.