Investment tax credits provided by the Canadian government to stimulate economic development in selected regions of the country are relevant cash flows in capital budgeting.

Question

Quizplus · Accepted Answer

Investment tax credits provided by the government can reduce the initial cost of a capital project and therefore impact the cash flows associated with the project. As such, they are relevant cash flows that should be considered in capital budgeting.

Investment Tax Credits Provided by the Canadian Government to Stimulate