When evaluating capital budgeting decisions, which of the following items should NOT be included in the construction of cash flow projections for purposes of analysis?
A)Net salvage value
B)Changes in net working capital requirements
C)Shipping and installation costs
D)All of the above should be included.

Question

Quizplus · Accepted Answer

All of the above items, including net salvage value, changes in net working capital requirements, and shipping and installation costs, should be included in the construction of cash flow projections for purposes of analysis. These factors can all have a significant impact on the overall profitability and feasibility of a capital budgeting decision.

When Evaluating Capital Budgeting Decisions, Which of the Following Items