If net present value is computed using after-tax cash flows which of following are included in the computation of the net present value?

Question

Quizplus · Accepted Answer

After-tax cash flows include all cash inflows and outflows that are affected by taxes. Therefore, any tax-related expenses and benefits are included in the computation of net present value. Choice A (taxes paid) is the only answer choice that relates to taxes and is therefore included in the computation of after-tax cash flows.

If Net Present Value Is Computed Using After-Tax Cash Flows