In terms of the capital budgeting process, net cash flows are the ____.
A) net cash outlays required to place a project in service
B) funds invested in additional assets
C) incremental changes in a firm's cash flow
D) outlays that have already been made

Question

Quizplus · Accepted Answer

Net cash flows refer to the incremental changes in a firm's cash flow resulting from a capital investment project. This includes both the inflows and outflows of cash associated with the project over its life. Options A, B, and D do not accurately describe net cash flows.

In Terms of the Capital Budgeting Process, Net Cash Flows