Which of the Following Should Not Be Included as Investment

question 134

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:

Equilibrium Price

The sale price at which the supply of goods precisely meets the demand in the market.

Fine

A monetary penalty imposed by an authority on individuals or entities as punishment for an offense or infraction.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Total Variable Costs

The sum of expenses that vary directly with the level of production or output, including costs for materials and labor.