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Author Question: Depreciation is usually NOT considered an operating cash flow in capital budgeting because ________. (Read 35 times)

panfilo

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on: Mar 6, 2021

Question 1

An example of a sunk cost in a capital budgeting decision for new equipment is ________.
◦ the initial investment in working capital
◦ the original price of an old equipment
◦ the necessary transportation costs on a new equipment
◦ the initial investment in a new equipment

Question 2

Depreciation is usually NOT considered an operating cash flow in capital budgeting because ________.
◦ depreciation is usually a constant amount each year over the life of the capital investment
◦ deducting depreciation from operating cash flows would be counting the lump-sum amount twice
◦ depreciation usually does not result in an increase in working capital
◦ depreciation usually has no effect on the disposal price of the machine
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by panfilo on Mar 6, 2021

taylorsonier

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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panfilo

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Reply 2 on: Mar 6, 2021
Excellent

amit

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Reply 3 on: Yesterday
:D TYSM

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