Which of the following statements is true about relevant cash flows?

A. Day-to-day operating cash flows of a firm are relevant cash flows.
B. Inflation during the project's lifetime is a relevant cash flow.
C. The tax-deduction received for the depreciation expenses is not a relevant cash flow.
D. Sunk costs of an engineering study to determine the feasibility of a project are relevant cash flows.
E. Advertising cost of a project that the firm already owns is a relevant cash flow.


Answer: A

Business

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