The estimated benefits from a project are expressed as cash flows instead of income flows because:

it is cash, not accounting income, >>>>>>>>>>>>>>>>>>>>that is central to the firm's capital budgeting decision.

I agreed with  Mohammed Shahid Ullah- I will go with choice B which is ...it is cash, not accounting income, that is central to the firm's capital budgeting decision.

Calculation of Cash flows is simpler than Income

Correct Ans is

 

It is cash, not accounting income, that is central to the firm's capital budgeting decision.

 

Thank you Emaad

B--------------------------------

it is cash, not accounting income, that is central to the firm's capital budgeting decision.. $$$$$$$$$$$$$$$$$$$$$$$$$$

 

I agree with experts

Thank you

Agree with Mr. Emad.............

Good answer add by experts <<<<<<<<<<

>>>>>>>> it is cash, not accounting income, that is central to the firm's capital budgeting decision.

 

My answer is choice (B) It is cash