In Net Present Value Analysis,a Reduction in a Future Cash

question 81

Multiple Choice

In net present value analysis,a reduction in a future cash outflow is treated as ________.

• A) an irrelevant cash flow
• B) a cash inflow
• C) a disposal value of a long-term asset
• D) an expense

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Definitions:

Proceeds

The amount of money received from a transaction, especially after selling an asset or completing a deal.

Uniform Commercial Code

A codification of the laws governing commercial transactions in the United States, designed to make interstate commerce more efficient.

Financing Statement

A document filed by a secured party to give public notice of their interest in the property of a debtor, typically used in secured transactions.

Collateral

Assets pledged by a borrower to secure a loan or other credit, which can be seized by the lender if the borrower fails to pay.