An Example of a Fixed Asset Is

question 10

Multiple Choice

An example of a fixed asset is

• A) a delivery truck for sale by an automotive dealer.
• B) inventory.
• C) a delivery truck used by a grocer to deliver merchandise to customers.
• D) short-term investments in stock.

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Definitions:

Net After-Tax Salvage Value

The estimated value of an asset at the end of its useful life, after subtracting any taxes associated with its disposal.

Operating Cash Flow

The cash generated from normal business operations, reflecting the company’s ability to generate sufficient revenue to cover its operational expenses.

Required Rate Of Return

The minimum percentage return an investor expects to receive from an investment to compensate for its risk.

Initial Cash Investment

The amount of cash used to fund a new investment or project at its outset.