Which of the Following Items Is NOT a Relevant Cash

question 141

Multiple Choice

Which of the following items is NOT a relevant cash inflow or cash outflow when using the net present value method? (Ignore income taxes.)

• A) acquisition cost of new equipment at time zero
• B) future disposal value of a long-term plant asset
• C) future operating cash inflows from a long-term plant
• D) depreciation expense in future periods

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Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Marginal Cost Paradigm

The economic principle that examines the additional costs incurred from producing one more unit of a good or service.

Oligopolistic Market

A market structure characterized by a small number of large firms controlling the majority of market share, leading to competitive yet interdependent market dynamics.

Unprofitable Products

Items or services that generate less revenue than the cost associated with producing and selling them.