The categories of cash flows include __________?
Correct answer: D. all of above
- A. net initial investment
- B. cash flow from operations after paying taxes
- C. cash flow from terminal disposal after paying taxes
- D. all of above
Explanation
Capital investment analysis normally considers the initial investment, operating cash flows after tax, and terminal cash flows such as disposal proceeds and returned working capital. Therefore, all listed categories apply.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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