The calculation of incremental cash flows over a project's useful life should include which of the following?
A)Labor and material savings
B)Additional revenues attributable to the project
C)Investment in net working capital
D)All of the above

Question

Quizplus · Accepted Answer

Incremental cash flows over a project's useful life should include all relevant cash flows, including labor and material savings (which reduce costs), additional revenues attributable to the project (which increase cash inflows), and investment in net working capital (which affects cash flows). Therefore, all of the options listed should be included in the calculation of incremental cash flows.

The Calculation of Incremental Cash Flows Over a Project's Useful