The ________ cash inflows and outflows of each capital project alternative must be evaluated on an incremental cash-flow basis.

Question

Quizplus · Accepted Answer

When evaluating capital projects, it is important to consider the after-tax cash inflows and outflows on an incremental cash-flow basis. This takes into account the net effect of the project on the company's cash flow after accounting for taxes. Pre-tax and general cash flows do not take into account tax implications, while standard and major cash flows are not commonly used terms in capital budgeting analysis.

The ________ Cash Inflows and Outflows of Each Capital Project