Which of the following statements concerning cash flow determination for capital budgeting purposes is not correct? Group of answer choices Net working capital changes should be included in cash flow forecasts. Book depreciation is relevant because it affects net income. Tax depreciation must be considered because it affects cash payments for taxes. Sunk costs are not incremental flows and should not be included.
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Net working capital changes should be included in cash flow forecasts. - This statement is correct. Changes in net working capital, such as changes in inventory, accounts receivable, and accounts payable, can affect cash flows and should be considered in cash flow Show more…
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