To be included in a capital budgeting analysis,all incremental free cash flows must be expensed on the company's books,otherwise generally accepted accounting principles will be violated.

Question

Quizplus · Accepted Answer

Incremental free cash flows are not expensed on the company's books, but rather they are included in the capital budgeting analysis as cash inflows or outflows. This does not violate generally accepted accounting principles.

To Be Included in a Capital Budgeting Analysis,all Incremental Free