Which of the following is the first step in calculating project cash flows?
A)Estimating a project's operating cash flows
B)Calculating a project's working capital requirements
C)Calculating a project's capital expenditure requirements
D)Calculating a project's free cash flow

Question

Quizplus · Accepted Answer

Estimating a project's operating cash flows is typically the first step in calculating project cash flows. This involves forecasting the cash inflows and outflows associated with the day-to-day operations of the project. Once operating cash flows are estimated, then working capital requirements, capital expenditure requirements, and free cash flows can be calculated.

Which of the Following Is the First Step in Calculating