When a new piece of equipment is purchased, which of the following is considered a cash inflow?
A)Cost savings
B)Salvage value of the new equipment
C)Additional revenue generated
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Cost savings, salvage value, and additional revenue generated are all considered cash inflows when a new piece of equipment is purchased. Cost savings reduce expenses, salvage value is the residual value at the end of its useful life, and additional revenue is the extra income generated by using the new equipment.

When a New Piece of Equipment Is Purchased, Which of the Following