Quiz Ch 12 – T/F Consideration of Direct Cash Flows and Externalities in Capital Budgeting
True or false: Cash costs and inflows related to a project can be identified for a company, referred to as "direct inflows and outflows." The resulting net difference represents the direct net cash flow. Costs and benefits not linked to the firm, but to external parties, are known as externalities and are not obligatory for inclusion in the capital budgeting analysis.
Experts Have Solved This Problem
Please login or register to access this content.