The estimated benefits from a project are expressed as cash flows instead of income flows because:

this is required by the Internal Revenue Service.

it is simpler to calculate cash flows than income flows.

it is cash, not accounting income, that is central to the firm's capital budgeting decision.

this is required by the Securities and Exchange Commission.

The estimated benefits from a project are expressed as cash flows inst

1.	The estimated benefits from a project are expressed as cash flows instead of income flows because:
A.	it is simpler to calculate cash flows than income flows.
B.	it is cash, not accounting income, that is central to the firm's capital budgeting decision.
C.	this is required by the Internal Revenue Service.
D.	this is required by the Securities and Exchange Commission.
Answer» C. this is required by the Internal Revenue Service.