Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.



Tags
#cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
Cash flows are based on [...] costs.
Answer
opportunity

Thats why they are incremental, kid

Tags
#cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
Cash flows are based on [...] costs.
Answer
?

Tags
#cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
Cash flows are based on [...] costs.
Answer
opportunity

Thats why they are incremental, kid
If you want to change selection, open original toplevel document below and click on "Move attachment"

Parent (intermediate) annotation

Open it
Cash flows are based on opportunity costs. What are the incremental cash flows that occur with an investment compared to what they would have been without the investment?

Original toplevel document

3. BASIC PRINCIPLES OF CAPITAL BUDGETING
re often ignored because, if they are real, they should result in cash flows at some other time. Timing of cash flows is crucial. Analysts make an extraordinary effort to detail precisely when cash flows occur. <span>Cash flows are based on opportunity costs. What are the incremental cash flows that occur with an investment compared to what they would have been without the investment? Cash flows are analyzed on an after-tax basis. Taxes must be fully reflected in all capital budgeting decisions. Financing costs are ignored. This may se

Summary

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Details

No repetitions


Discussion

Do you want to join discussion? Click here to log in or create user.