The calculation of annual net cash flow from a particular investment project should include all of the following except:
A) Income taxes.
B) Revenues generated by the investment.
C) Cost of products generated by the investment.
D) Depreciation expense.
E) General and administrative expenses.

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash charge and does not affect the cash flow directly. It is an accounting method used to allocate the cost of a tangible asset over its useful life but does not represent an actual cash outflow.

The Calculation of Annual Net Cash Flow from a Particular