From the given statements, which of the following statement about capital budgeting
cash flow estimation is correct?
a) Interest expense for any loan taken for acquiring plant and equipment for the
project should be included in the project's cash flows.
b) Money spent on marketing and consolation last year should be included in the
project's cash flows.
c) Opportunity costs related to the land used for the project should be included in
the project's cash flows.
d) All are correct.
Answers
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The answer is option D because all kinds of financial transactions comes under the cash flow statements and this should be examined by the company.
Explanation:
- Cash flow statements are prepared in the company depending on the investment made by the company at various times for various causes.
- The cash flow statements are prepared depending on the past and the present financial transactions taking place in the company.
- If more is the number of investments, then more will be the transaction process and they can be depicted neatly in a cash flow statement.
To know more:
1) What is cash flow statement?
https://brainly.in/question/1800381.
2) Meaning of financial transactions?
https://brainly.in/question/1248954
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