Financial managers measure the benefits and costs of longterm investment proposals in terms of:
A) the effect they will have on accounts receivable.
B) the cash flows they will generate.
C) the lines of credit that will be needed.
D) the degree of liquidity of the funds that will be tied up.

Question

Financial managers measure the benefits and costs of long­term investment proposals in terms of:
A) the effect they will have on accounts receivable.
B) the cash flows they will generate.
C) the lines of credit that will be needed.
D) the degree of liquidity of the funds that will be tied up.

Quizplus · Accepted Answer

Financial managers measure the benefits and costs of long-term investment proposals in terms of the cash flows they will generate. This involves taking into account the expected cash inflows and outflows over the life of the project in order to determine its net present value and other financial metrics. The other options listed are not directly related to measuring the benefits and costs of long-term investment proposals.

Financial Managers Measure the Benefits and Costs of Long­term Investment

Financial Managers Measure the Benefits and Costs of Longterm Investment