Which of the Following Items Should Not Be Considered When

question 69

Multiple Choice

Which of the following items should not be considered when computing the terminal cash flow for an expansion project?

• A)a change in net working capital associated with the purchase of the project
• B)the selling price of the asset at the end of its life
• C)increases in cash sales that occur because the project is purchased
• D)taxes on the sale of the asset at the end of its life
• E)none of the above

---

Definitions:

Japanese Companies

Entities based in Japan, engaged in commercial, industrial, or professional activities.

Oligopolized Industry

A market structure characterized by a few firms that have significant control over market prices and competition.

Large Firms

are corporations or enterprises that operate on a large scale, typically having extensive operations, numerous employees, and a wide reach of influence and market control.

Concentration Ratio

A measure of the market share held by the largest firms within an industry, used to determine the level of competition and market structure.