The important point(s)to remember while estimating the cash flows of a project
A)is that only cash flow is relevant.
B)are cash flow is relevant and always estimate cash flows on an incremental basis.
C)are to always estimate cash flows on an incremental basis and to be consistent in the treatment of inflation.
D)are cash flow is relevant, always estimate cash flows on an incremental basis, and be consistent in the treatment of inflation.

Question

Quizplus · Accepted Answer

It is important to remember that only cash flow is relevant, and to always estimate cash flows on an incremental basis. Additionally, it is crucial to be consistent in the treatment of inflation, which can affect both the timing and amount of cash flows. Therefore, choice D is the best option as it covers all the important points to remember while estimating the cash flows of a project.

The Important Point(s)to Remember While Estimating the Cash Flows of a Project