Which of the Following Is Not a Relevant Item to Consider

question 9

Multiple Choice

Which of the following is not a relevant item to consider in cash flow estimation?

• A) A change in current assets invested in the project.
• B) A change in current liabilities to finance new inventories.
• C) Regular meeting fees for the board of directors incurred when the go-no go decision is made.
• D) Any net changes in working capital over the life of the investment.

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Definitions:

Net Sales

The revenue from sales transactions after deducting returns, allowances, and discounts.

Net Income

The total profit of a business after all expenses and taxes have been subtracted from revenue.

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as products, services, or departments.

Intangible Asset

An identifiable non-monetary asset without physical substance, such as patents, trademarks, and goodwill, that provides economic benefits.