Question

when performing capital budgeting, corporations should account for mandated _______ when making any assumptions about future cash flows.

○ taxes

○ financing

○ sunk costs

○ depreciation

Explanation:

In capital budgeting, mandated taxes are a key factor affecting future cash flows as tax regulations require corporations to account for tax obligations. Financing relates to how projects are funded, not direct cash flow assumptions. Sunk costs are irrelevant for future cash flow decisions. Depreciation is a non - cash expense and not a mandated factor in the same way as taxes for cash flow assumptions. So the correct option is taxes.

Answer:

A. taxes