Which of the Following Would Be Considered a Cash Inflow

question 120

Multiple Choice

Which of the following would be considered a cash inflow in determining the value of a capital investment?

• A) Incremental revenues from increased productivity
• B) Cost savings from a reduction in labor hours
• C) An increase in working capital commitments
• D) Both incremental revenues from increased productivity and cost savings from a reduction in labor hours are correct.

---

Definitions:

Cost Per Share

The price at which a company's shares were initially offered to the public or the current market value of a share.

Stockholders' Equity

Represents the owners' residual interest in a corporation's assets after deducting liabilities.

Buy Back

A corporate action in which a company repurchases its own shares from the marketplace.

Take-Over

The acquisition of control over a company, typically by purchasing a majority of its stock.