Asked by
Andrea Brenner
on Dec 01, 2024Verified
When estimating cash flows for capital budgeting projects:
A) interest expenses incurred to finance the project are included.
B) interest expense is considered in the cash flow estimates only if the financing is principally from debt.
C) interest expense is never included in the cash flow estimates.
D) None of the above
Interest Expense
The cost incurred by an entity for borrowed funds over a period of time.
Cash Flow Estimates
Projections of the amount of money expected to flow in and out of a business over a specified period, important for budgeting and financial planning.
Finance Project
A planned undertaking in the field of finance, typically involving investment, funding, or analysis to achieve specific financial objectives.
- Identify factors that do not affect cash flow estimates directly, such as depreciation and financing costs.
Verified Answer
KT
Learning Objectives
- Identify factors that do not affect cash flow estimates directly, such as depreciation and financing costs.