Which of the Following Is NOT a Component of the Initial

question 94

Multiple Choice

Which of the following is NOT a component of the initial cash flow of a capital investment analysis?

• A)The change in the net working capital requirements.
• B)The initial capital cost of the asset.
• C)The original cost of a capital asset that was incurred several years ago.
• D)The opportunity costs associated with the project.

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Definitions:

Correlational Research

A research method used to examine the relationship between two or more variables, without implying causation.

Experimental Research

A scientific approach that seeks to establish cause-and-effect relationships by manipulating and controlling variables.

Descriptive Research

A type of research that aims to accurately describe characteristics or phenomena, without seeking to establish cause-and-effect relationships.

Interpersonal Attraction

The force that draws people together and creates the desire for ongoing interaction.