The net investment calculation for an ____ project normally includes ____.
A) asset expansion; pretax proceeds from the sale of the old asset
B) asset replacement; pretax proceeds from the sale of the old asset
C) asset expansion; after-tax proceeds from the sale of the old asset
D) asset replacement; after-tax proceeds from the sale of the old asset

Question

Quizplus · Accepted Answer

In an asset replacement project, the net investment calculation includes the after-tax proceeds from the sale of the old asset, as this affects the net cash outflow required for the new investment.

The Net Investment Calculation for an ____ Project Normally Includes