Which of the following is included in the calculation of the initial outlay for a capital investment?
A)Investment in working capital
B)Shipping expenses
C)Installation
D)All of the above

Question

Quizplus · Accepted Answer

All of the given options are included in the calculation of the initial outlay for a capital investment. Investment in working capital is necessary for the smooth operation of the investment over its useful life, shipping expenses are incurred to transport the asset to the location where it will be installed, and installation costs are required to make the asset operational. Therefore, all options should be considered while calculating the initial outlay of a capital investment.

Which of the Following Is Included in the Calculation of the Initial