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:

Average Costs

The total cost of production divided by the quantity produced, indicating the cost per unit of output.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and loan payments.

Marginal Productivity

Marginal productivity measures the change in output resulting from altering the level of a single input while holding other inputs constant.

Marginal Costs

The added financial burden of creating one more unit of a product or service.