The idea that we can evaluate the cash flows from a project independently of the cash flows for the company is known as

Question

Quizplus · Accepted Answer

The stand-alone principle states that the cash flows from a project should be evaluated independently of the cash flows for the company, and only the incremental cash flows directly attributable to the project should be considered. Therefore, option A is the correct answer. Option B and C are incorrect, as they do not accurately describe the principle in question. Option D is also incorrect, as the stand-alone principle is a well-recognized concept in finance.

The Idea That We Can Evaluate the Cash Flows from a Project