When making a capital budgeting decision,which of the following is/are NOT relevant?
i.The size of a cash flow.II.The risk of a cash flow.III.The accounting earnings from a cash flow.IV.The timing of a cash flow.
A) I only
B) II only
C) III only
D) II and III only
E) III and IV only

Question

Quizplus · Accepted Answer

The accounting earnings from a cash flow are not relevant in making a capital budgeting decision because they do not represent actual cash inflows and outflows. The size, risk, and timing of cash flows are all important factors to consider in evaluating a potential investment.

When Making a Capital Budgeting Decision,which of the Following Is/are