All of the Following Are Considered Cash Inflows Except the

question 26

Multiple Choice

All of the following are considered cash inflows except the

• A)future cash revenue generated by the investment
• B)future savings in ongoing cash operating costs
• C)future residual value of the capital investment
• D)future additional operating costs of the investment

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Definitions:

Absolute Advantage

The ability of a country to produce a good at a lower cost than its trading partners.

Protective Tariffs

Taxes imposed on imported goods to protect domestic industries from foreign competition by making the imported goods more expensive compared to local products.

Trade Deficit

A situation where a country’s imports exceed its exports during a given time period, leading to a negative balance of trade.

Capital

All means of production (mainly plant and equipment) created by people.