DO YOU BELIEVE THAT THE CASH FLOWS FROM THE SALE OF AN INVESTMENT SHOULD ALSO INCLUDE THE TAX EFFECT OF THE SALE? EXPLAIN.
Yes, the cash flows from the sale of an investment should include the tax effect of the sale. This is because taxes directly affect the amount of cash an investor ultimately receives after the transaction. Ignoring the tax implications would result in an inaccurate representation of the net cash flows. Explanation: Example: If an investor … Read more