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All of the Following Are Related to a Proposed Project

Question 1

Multiple Choice
All of the following are related to a proposed project. Which one of these should be included in the cash flow at Time 0?
A) Loan obtained to finance the project
B) Initial investment in inventory to support the project
C) Annual depreciation tax shield
D) Aftertax salvage value
E) Net working capital recovery

All of the following are related to a proposed project. Which one of these should be included in the cash flow at Time 0?


A) Loan obtained to finance the project
B) Initial investment in inventory to support the project
C) Annual depreciation tax shield
D) Aftertax salvage value
E) Net working capital recovery

Correct Answer:

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