Which of the following is NOT part of a project's initial cash outflow?
A) The asset's purchase price
B) Funds committed to support increased inventory levels due to expected increased sales if the firm adopts the project
C) A marketing survey completed last year to determine the project's feasibility
D) Expenses incurred to install the asset

Question

Quizplus · Accepted Answer

A marketing survey completed last year is not part of a project's initial cash outflow as it was incurred prior to the decision to undertake the project. The other options - asset purchase price, increased inventory levels, and installation expenses - are all part of a project's initial cash outflow.

Which of the Following Is NOT Part of a Project's