单选题

Which of the following statements is the most appropriate treatment of flotation costs for capital budgeting purposes? Flotation costs should be:

A、 incorporated into the estimated cost of capital.
B、 expensed in the current period.
C、 deducted as one of the project's initial-period cash flows.

【正确答案】 C

【答案解析】

Flotation costs are an additional cost of the project and should be incorporated as an adjustment to the initial-period cash flows in the valuation computation.