Preferably, cash flows for a project are estimated as:
A) Cash flows before taxes
B) Cash flows after taxes
C) Accounting profits before taxes
D) Accounting profits after taxes

Question

Quizplus · Accepted Answer

Cash flows should be estimated after taxes, as taxes are a cash outflow that will impact the profitability of the project. Accounting profits do not consider the timing or amount of cash flows, and therefore cannot accurately reflect the cash flows of a project.

Preferably, Cash Flows for a Project Are Estimated As