Evaluate the following statement: Since our perspective when evaluating a project is that of all of the investors in the firm, creditors as well as stockholders, then we should use the pre-tax cash flows produced by the project. .

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When evaluating a project, the perspective is typically that of the equity holders (stockholders), and the focus is on after-tax cash flows because taxes significantly affect the project's net cash flows and thus its valuation from an investment standpoint.

Evaluate the Following Statement: Since Our Perspective When Evaluating a Project