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Author Question: When a new piece of equipment is purchased, which of the following is considered a cash inflow? (Read 110 times)

urmomsucks

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Question 1

Which of the following is a cash flow that might occur when new equipment is purchased?
◦ Cash inflow for interest paid
◦ Cash inflow in the form of cost savings
◦ Cash outflow to pay the salvage value of the old equipment
◦ Cash outflow for depreciation

Question 2

When a new piece of equipment is purchased, which of the following is considered a cash inflow?
◦ Additional revenue generated
◦ Salvage value of the new equipment
◦ Cost savings
◦ All of these answer choices are correct.


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Marked as best answer by urmomsucks on Feb 5, 2023

xinyiff

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urmomsucks

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


dyrone

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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