Which of the following is considered a relevant cash flow?
A)A market feasibility study already performed prior to the project
B)Interest expense associated with financing the project
C)Initial cost of hiring and training employees
D)Both b & c
E)All of the above

Question

Quizplus · Accepted Answer

The initial cost of hiring and training employees is a relevant cash flow because it is an incremental cost directly associated with the project. Other options like a feasibility study already performed and interest expenses are not considered relevant cash flows for project evaluation.

Which of the Following Is Considered a Relevant Cash Flow