In capital budgeting decisions, relevant cash flows
A)are actual cash flows that differ between alternatives.
B)are actual cash flows that do not differ between alternatives.
C)are expected future cash flows that differ between alternatives.
D)are expected future cash flows that do not differ between alternatives.
E)are past cash flows lost.

Question

Quizplus · Accepted Answer

Relevant cash flows in capital budgeting are the expected future cash flows that differ between alternatives, as they impact the decision-making process by showing the financial differences between options.

In Capital Budgeting Decisions, Relevant Cash Flows