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:

Central Selling Point

A unique feature or benefit of a product or service that is emphasized to attract and convince potential customers.

Immediate, Personal Service

Prompt and individualized assistance tailored to meet specific needs of customers.

Welcoming Claims

Statements or assertions made with the intention of creating a friendly or hospitable environment.

Unethical Individuals

People who act in ways that violate moral principles or standards of conduct, often causing harm or disadvantage to others.