Which of the following statements about capital budgeting cash flow estimation is false? A)...
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Accounting
Which of the following statements about capital budgeting cash flow estimation is false?
A) Operating cash flow in each year equals EBIT Tax + non-cash items such as depreciation expense.
B) If the salvage value is less than the tax book value at the end of the project, then the salvage value tax benefit should be considered a cash inflow.
C) Sunk costs are large cash expenditures that should be recovered from a projects incremental flows and thus should be included in capital budgeting analysis. D) None of these are false.
E) Net working capital changes often affect both the initial (t = 0) investment cash flow and the end-of-project (terminal) cash flow.
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