Which of the following is NOT one of the categories for a project's relevant after-tax cash flows?
A) Financing flows
B) Initial cash outflow
C) Differential flows over the project's life
D) Terminal cash flow

Question

Quizplus · Accepted Answer

Financing flows are not considered a category of a project's relevant after-tax cash flows because these cash flows are related to the financing of the project (e.g., interest payments, dividend payments) and not the project's operational cash flows. The relevant cash flows for project evaluation include initial investment, differential (or incremental) cash flows over the project's life, and terminal cash flows related to the disposal of the project or asset.

Which of the Following Is NOT One of the Categories