Which of the following is included in the calculation of the initial outlay for a capital investment?
A) Investment in working capital
B) A feasibility study conducted the previous year.
C) Installation
D) A and C but not B

Question

Quizplus · Accepted Answer

The initial outlay includes the investment in working capital, which is needed to fund the day-to-day operations of the project, and the installation costs, which are essential for getting the project up and running. The feasibility study conducted in the previous year does not directly impact the initial outlay, but may ultimately affect the decision to pursue the investment.

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