2D1B IN DISCOUNTED CASH FLOW TECHNIQUES, WHICH ONE OF THE FOLLOWING A...
301.
CSO: 2D1b
LOS: 2D1b
In discounted cash flow techniques, which one of the following alternatives best reflects
the items to be incorporated in the initial net cash investment?
Net proceeds
Capitalized
from sale of
Impact of
expenditures
old asset in
spontaneous
(e.g., shipping
Changes in net
a replacement
changes in
costs)
working capital
decision
current liabilities
a.
No
Yes
Yes
Yes.
b.
Yes
No
No
No.
c.
No
Yes
No
No.
d.
Yes
Yes
Yes
Yes.