Which of the Following Should NOT Be Included as Investment

question 43

Multiple Choice

Which of the following should NOT be included as investment costs in evaluating a capital asset?

• A) interest payments and other financing cash flows that result from raising funds to finance a project
• B) employee training expenses
• C) shipping expenses
• D) installation expenses

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Definitions:

Inelastic

Characterizes a situation where the demand for a product is not significantly affected by changes in price.

Elastic

Describes a situation in economics where the demand for a product or service significantly changes in response to a change in price.

Inelastic

A characteristic of goods or services for which demand does not significantly change with a change in price.

Price Range

The difference between the lowest and highest prices within a given market.