Which of the following basic variables must be considered in determining the initial investment associated with a capital expenditure?
A) incremental annual savings produced by the new asset
B) cash flows generated by the new investment
C) proceeds from the sale of an existing asset
D) profits on the sale of an existing asset

Question

Quizplus · Accepted Answer

The initial investment associated with a capital expenditure includes the proceeds from the sale of an existing asset, as this can offset part of the cost of the new investment.

Which of the Following Basic Variables Must Be Considered in Determining