Which of the following is not a cash flow consideration in evaluating a proposed capital project?
A)Increases in net working capital
B)Basic overhead expenses
C)Sales lost from other parts of the company because of the project
D)Foregone depreciation resulting from a replacement machine

Question

Quizplus · Accepted Answer

Basic overhead expenses are not a cash flow consideration in evaluating a proposed capital project because they are not directly related to the project's cash inflows and outflows.

Which of the Following Is Not a Cash Flow Consideration