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.