Financial managers measure the benefits and costs of long-term investment proposals in terms of which of the following?
A) the cash flows it will generate
B) whether it will be financed with debt or equity
C) how accounts receivable will be affected
D) the lines of credit that will be needed

Question

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 helps to determine the value and feasibility of the investment. The other options mentioned, such as how accounts receivable will be affected or lines of credit needed, are important factors to consider in financial management but do not directly measure the benefits and costs of the investment proposal.

Financial Managers Measure the Benefits and Costs of Long-Term Investment