Generally speaking,interest expenses should be included in the cash flows for capital budgeting evaluation as they represent a cash outflow.

Question

Quizplus · Accepted Answer

Interest expenses are typically not included in cash flows for capital budgeting evaluations because these analyses focus on the operational cash flows of the project itself, excluding financing costs to assess the project's viability irrespective of how it is financed.

Generally Speaking,interest Expenses Should Be Included in the Cash Flows