The estimation of a project's net cash flows NCF)should not include changes in
A)depreciation.
B)cash operating costs.
C)interest expense.
D)sales revenue.

Question

Quizplus · Accepted Answer

Interest expense is not included in the estimation of a project's net cash flows because it is a financing cash flow, not an operating cash flow. Net cash flows should reflect the operational performance and cash-generating ability of a project, excluding financing costs like interest.

The Estimation of a Project's Net Cash Flows NCF)should Not