Question: Select the statement that is most correct. Externalities present in projects being considered in capital budgeting are very difficult to quantify and, as a result

Select the statement that is most correct. Externalities present in projects being considered in capital budgeting are very difficult to quantify and, as a result of this, they should be excluded from financial analyses. Since the focus of capital budgeting is on cash flows rather than on net income, changes in non cash balance sheet accounts, such as inventory, are not relevant in the analysis

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