When evaluating an investment project, which of the following best describes the financial
information needed by the decision maker?
A) pre-tax accounting profits adjusted for any accounting method changes
B) incremental cash flows before taxes so the decision will not be biased by a tax code that may
change in the future
C) after-tax accounting profits
D) after-tax incremental cash flows to the company as a whole
D
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What will be an ideal response?
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a. True b. False Indicate whether the statement is true or false