Which of the following is NOT appropriate for estimating the cash flows associated with capital expenditure decisions?

Question

Quizplus · Accepted Answer

Interest and dividend payments are not relevant to estimating the cash flows associated with capital expenditure decisions. The appropriate methods are A, C, and D. Nominal cash flows should be discounted with nominal rates, and real cash flows should be discounted with real rates. After-tax cash flows should be used with after-tax discount rates, and marginal or incremental cash flows arising from capital budgeting decisions should be considered.

Which of the Following Is NOT Appropriate for Estimating the Cash