The net cash flow of a particular investment project:
A)Does not take income taxes into consideration.
B)Equals the total of the cash inflows of the project.
C)Equals the total of the cash outflows of the project.
D)Does not include depreciation.
E)Is equal to operating income each period.

Question

Quizplus · Accepted Answer

Net cash flow for an investment project does not include depreciation because depreciation is a non-cash expense. It affects accounting profit but not the actual cash flow.

The Net Cash Flow of a Particular Investment Project