Relevant cash flows for investment decisions are:

Question

Quizplus · Accepted Answer

Relevant cash flows are those that will differ between alternatives and will affect the investment decision. Expected cash flows that are different between choices are important in evaluating the best course of action. Therefore, option C is the best choice as it describes relevant cash flows. Options A and D are incorrect because the expected or actual cash flows are not necessarily identical between alternatives. Option B is also incorrect because it does not take into account the expected cash flows, which are crucial for investment decisions.

Relevant Cash Flows for Investment Decisions Are