If taxes are ignored, all of the following items are included in a discounted cash flow analysis except:
A)future operating cash savings.
B)depreciation expense.
C)future salvage value.
D)investment in working capital.

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense and therefore is not considered in a discounted cash flow analysis. The other items listed are all considered in such an analysis.

If Taxes Are Ignored, All of the Following Items Are