问题如下：
5. Are Robinson’s first two observations, respectively, correct?
选项：
A.Yes for both observations.
B.No for the first and Yes for the second.
C.Yes for the first and No for the second.
解释：
Robinson’s first statement is wrong. The value of an asset is the present value of its future cash flows. Economic income each year is the cash flow minus economic depreciation, EI = CF ED. For this company, which is declining in value each year, the economic depreciation is positive and EI is less than CF each year. Consequently, the present value of economic income (EI) will be less than the present value of future cash flows (CF). Robinson’s second statement is correct.
"The present value of the company’s economic income should be equal to the present value of the cash flows in the basic capital budgeting approach." 这句中的in the basic capital budgeting approach 是什么意思？没太明白
