In the Analysis of a Capital Budgeting Proposal, for Which

question 130

Multiple Choice

In the analysis of a capital budgeting proposal, for which of the following items are there NO after-tax consequences?

• A)cash flow from operations
• B)gain or loss on the disposal of the asset
• C)reduction of working capital balances at the end of the useful life of the capital asset
• D)None of these answers is correct.

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Definitions:

NTFS

New Technology File System, a file system used by Windows operating systems designed for storing and accessing files on a hard disk with support for large volumes, encryption, and detailed security permissions.

exFAT

A file system type that improves upon FAT32 by having a theoretical maximum file size of 16 EB, maximum volume size of 64 ZB (but 512 TB is the current limit), smaller cluster sizes than FAT32, and an increased number of files allowed in a directory. Created for external storage media such as flash drives and hard drives for saving images/video.

FAT32

A file system that supports hard drives up to 2 TB in size.

SATA

Serial ATA, an interface used to connect ATA hard drives to a computer's motherboard, offering improvements over the older Parallel ATA (PATA) standard, including faster data transfer rates.