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Corporate Finance Q38

0. When computing the cash flows for a capital project, which of the following is most likely to be included?

  • Option : C
  • Explanation : Capital budgeting cash flows are based on opportunity costs. Accounting income is different from capital budgeting cash flows since non-cash items are included in it. Financing costs are not included in a cash flow calculation but are considered in the calculation of the discount rate.
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