Which of the Following Items Has No After-Tax Consequences in the Analysis

question 93

Multiple Choice

Which of the following items has no after-tax consequences in the analysis of a capital investment proposal?

• A) Cash flow from operations.
• B) Salvage value of an existing asset that would be sold.
• C) Employee severance compensation.
• D) Reduction of net working capital at the termination (expiration) of the proposed project.
• E) Gain or loss on the disposal of the investment at the end of its useful life.

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Definitions:

Potential Revenue Stream

Future income that could be generated from a business activity or investment, not yet realized.

Operational CRM

Customer relationship management focused on the direct interactions with customers, aiming to enhance customer service, sales, and marketing operations.

Back-Office

Refers to the administrative and support personnel in a company who are not client-facing, involved with functions such as accounting, IT, and human resources.

Customer Acquisition

The process of bringing new customers to a business through various marketing and outreach strategies.