WHICH OF THE FOLLOWING STATEMENTS DESCRIBES THE MOST APPROPRIATE T...

35. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING VERSIONB QUESTIONS 2014 35. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING VERSIONB QUESTIONS 2014
MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING VERSIONB QUESTIONS 2014

35.

Which of the following statements describes the most appropriate treatment of cash flows in capital budgeting? A. A project is evaluated using its incremental cash flows on an after-tax basis. B. Interest costs are included in the project's cash flows to reflect financing costs. C. Sunk costs and externalities should not be included in the cash flow estimates.

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