An important cash inflow in the analysis of initial cash flows for a replacement project is
A) the sale value of the old asset.
B) taxes.
C) installation cost.
D) the cost of the new asset.

Question

Quizplus · Accepted Answer

The sale value of the old asset is an important cash inflow because it represents the amount of money that can be recovered from selling the old asset. This can help offset the cost of purchasing the new asset and reduce the net initial cash outflow.

An Important Cash Inflow in the Analysis of Initial Cash