When Calculating the Net Cash Flow in a Project's Expected

question 60

Multiple Choice

When calculating the net cash flow in a project's expected final year,

• A)recovery of any working capital invested is disregarded
• B)the after-tax salvage value of any project equipment is considered
• C)the remaining principal on any borrowed funds is considered
• D)the sales proceeds from any land associated with the project is disregarded

---

Definitions:

Profit Margin

A financial indicator showing the percentage of income surpassing the cost of goods sold, employed to evaluate a company's financial well-being.

Total Assets

The sum of all assets owned by an entity, including current and non-current assets, used to provide a comprehensive view of the entity's financial strength.

Return On Investment

A financial metric used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments, measuring gain versus cost.

Net Book Value

The value of an asset as recorded in the accounting records, subtracting accumulated depreciation or amortization from the original cost.