Which of the Following Is Not a Typical Cash Flow

question 90

Multiple Choice

Which of the following is not a typical cash flow related to equipment purchase and replacement decisions?

• A) Increased operating costs
• B) Overhaul of equipment
• C) Salvage value of equipment when project is complete
• D) Depreciation expense

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Definitions:

Bank Loans

Money lent to individuals or businesses by a bank, to be repaid with interest over a specified period.

Financial Asset(s)

Financial Assets are tangible or intangible assets that represent a claim to future cash flows or ownership of value, including stocks, bonds, and bank deposits.

Derivatives

Derivatives are financial instruments whose value is derived from the performance of an underlying asset, index, or interest rate, used for speculation or hedging risks.

US Agency Bonds

Securities issued by agencies of the United States government or government-sponsored enterprises, offering a relatively safe investment.