Once the operations for a new project are up and running,we need to estimate the cash flow from ________.
A)sunk costs
B)flotation costs
C)depreciation
D)operations

Question

Quizplus · Accepted Answer

Once the operations for a new project are up and running, the cash flow estimation should be based on the expected cash inflows and outflows from the project's operations. Sunk costs are costs that have already been incurred and cannot be recovered, such as past research and development expenses. Flotation costs are expenses related to issuing new securities, such as stock or bonds. Depreciation is a non-cash expense that represents the wear and tear of assets over time. Therefore, the best choice is D - operations.

Once the Operations for a New Project Are Up and Running,we