Training Cost Is What Type of Total Cost of Ownership

question 25

Multiple Choice

Training cost is what type of total cost of ownership cash flow?

• A) Acquisition
• B) Ownership
• C) End of life
• D) Transportation cost is not a type of total cost of ownership cash flow.

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Definitions:

Income Tax Rate

The percentage at which an individual or corporation is taxed. The tax rate may increase as taxable income increases (progressive tax rates).

Profitability Index

A financial metric used to assess the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Present Value of Net Inflows

The current value of a series of cash inflows expected in the future, discounted back at a particular rate to account for the time value of money.

Annual After-Tax Cash Flow

The amount of money a company has left after paying all its taxes and accounting for all its expenses and income over a year.