Which of the following is a principle of capital budgeting which states that the calculations of cash flows should remain independent of financing?
A) generally accepted accounting principle
B) financing principle
C) separation principle
D) WACC principle

Question

Quizplus · Accepted Answer

The separation principle in capital budgeting states that the decisions regarding investments should be made without considering the financing aspect, meaning the calculation of cash flows for a project should be independent of how the project is financed.

Which of the Following Is a Principle of Capital Budgeting