Testbank, Question 20 Which of the following is not relevant to the cash flow estimates that...
Testbank, Question 20
Which of the following is not relevant to the cash flow estimates that are associated with a project?
|
The associated financing costs. |
|
The economic life of the project. |
|
The effect of inflation. |
|
The terminal cash flow. |
Homework Answers
Ans The associated financing costs.
Financing costs are ignored while calculating cash flow estimates that are associated with a project.
Relevant points while calculating cash flow estimates that are associated with a project are life of project, inflation, cash flows- inward and outward.
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Testbank, Question 20
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