All of the Following Are Considered Cash Inflows EXCEPT the ________

question 123

Multiple Choice

All of the following are considered cash inflows EXCEPT the ________.

• A) future cash revenue generated by the investment
• B) future savings in ongoing cash operating costs
• C) future residual value of the capital investment
• D) future additional operating costs of the investment

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Definitions:

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Expenses that change in proportion to the activity of a business, such as the cost of raw materials or production volume.

Total Revenue

The amount of money generated from sales of goods or services before any expenses are subtracted.

Variable Costs

Costs that change in proportion to the level of production or sales activities of a business.