Which of the Following Is Not a Relevant Cash Flow

question 93

Multiple Choice

Which of the following is not a relevant cash flow in capital budgeting?

• A)after-tax cash flow from current disposal of old asset
• B)after-tax cash flow from future disposal of asset at life's end
• C)after-tax cash flow from accumulated depreciation
• D)initial asset investment of the replacement machine
• E)after-tax annual cash flows relating to the new asset

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Close Account Year-End

The process of updating account balances and summarizing a company's financial activities to prepare for the next accounting period.

Interest Revenue

Income earned from lending funds or through investing in interest-bearing financial instruments.