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Which principle of capital budgeting emphasizes that decisions should be based on incremental cash flows?
  • a)
    Principle 1
  • b)
    Principle 2
  • c)
    Principle 3
  • d)
    Principle 4
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Which principle of capital budgeting emphasizes that decisions should ...
Principle 1 of capital budgeting emphasizes that decisions should be based on incremental cash flows, which represent the changes in cash flow if the project is undertaken. This principle helps in evaluating the true financial impact of a project.
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Which principle of capital budgeting emphasizes that decisions should be based on incremental cash flows?a)Principle 1b)Principle 2c)Principle 3d)Principle 4Correct answer is option 'A'. Can you explain this answer?
Question Description
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