Relevant cash flows for a project are best described as
A) sunk cash flows.
B) incremental cash flows.
C) incidental cash flows.
D) accounting cash flows.

Question

Quizplus · Accepted Answer

Relevant cash flows refer to the incremental cash flows that are directly related to a particular project and are relevant for making decisions about that project. Sunk cash flows, incidental cash flows, and accounting cash flows are not considered relevant cash flows for a project.

Relevant Cash Flows for a Project Are Best Described as