Important points to remember while estimating cash flows of projects are:
I. only cash flow is relevant
II. always estimate cash flows on an incremental basis
III. be consistent in the treatment of inflation
A) I only
B) I and II only
C) II, and III only
D) I,II, and III

Question

Quizplus · Accepted Answer

All three points are important to remember while estimating cash flows of projects. It is important to consider only the relevant cash flows, estimate them on an incremental basis, and maintain consistency in the treatment of inflation to ensure accurate and effective analysis of project cash flows.

Important Points to Remember While Estimating Cash Flows of Projects