In estimating cash flows, the firm should include:
A)effects on other parts of the company.
B)fixed costs.
C)opportunity costs.
D)a and c
E)a, b, and c

Question

Quizplus · Accepted Answer

The firm should include the effects on other parts of the company and opportunity costs when estimating cash flows. The inclusion of fixed costs may not be necessary in all cases and depends on the specific situation. Therefore, choice E is too broad and not always applicable.

In Estimating Cash Flows, the Firm Should Include