The Pre-Tax and After-Tax Cash Flows Would Be the Same

question 39

Multiple Choice

The pre-tax and after-tax cash flows would be the same for all of the following items except

• A)the liquidation of working capital at the end of a project's life.
• B)the initial (outlay)cost of an investment.
• C)the sale of an asset at its book value.
• D)a cash payment for salaries and wages.

---

Definitions:

Gain Or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price.

Batting Cages

Enclosed areas designed for practicing batting skills in baseball or softball, usually equipped with pitching machines.

Fixed Assets

Long-term tangible assets used in operations and not expected to be converted to cash in the short term, such as buildings and machinery.

Accumulated Depreciation

The cumulative depreciation expense recorded for an asset from the time it was brought into service.