The after-tax cash flows without the project are referred to as:

Question

Quizplus · Accepted Answer

The base case refers to the current situation or status quo, without the implementation of the project. It represents the after-tax cash flows that would be received if the project were not undertaken, and serves as a benchmark against which the incremental cash flows resulting from the project are compared. A is incorrect because net investment refers to the initial cost of the project, while B refers to the difference between the cash flows with and without the project. D is too broad and untrue as one of the options is correct.

The After-Tax Cash Flows Without the Project Are Referred to As