Which of the following cash flows are NOT considered in the calculation of the initial outlay for a capital investment proposal?
A)Increase in accounts receivable
B)The cost of shipping new equipment
C)The cost of issuing new bonds if the project is financed by a new bond issue
D)The cost of installing new equipment
E)All of the above should be considered.

Question

Quizplus · Accepted Answer

The cost of issuing new bonds is a financing cost and is not included in the initial outlay, which focuses on the direct costs of acquiring and installing the asset.

Which of the Following Cash Flows Are NOT Considered in the Calculation