When Compiling the Relevant Cash Flows for a Project,the After-Tax

question 7

Multiple Choice

When compiling the relevant cash flows for a project,the after-tax value of any asset sold any time during the life of the project should be treated as a

• A)cash outflow at Time 0.
• B)change in net working capital.
• C)reduction in the cash flow for Time 0.
• D)cash flow in the last year of the project.
• E)cash flow in the year of sale.

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Definitions:

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