Which of the following should be omitted from projected cash flows?
A)Incremental cash flows.
B)Sunk costs.
C)Residual value.
D)Company taxation.

Question

Quizplus · Accepted Answer

Sunk costs should be omitted from projected cash flows because they are costs that have already been incurred and cannot be recovered or changed by future decisions. Incremental cash flows, residual value, and company taxation are all relevant factors that should be included in projected cash flows.

Which of the Following Should Be Omitted from Projected Cash