In developing the cash flows for an expansion project, the analysis is the same as the analysis for replacement projects where ________.
A) all cash flows from the old assets are equal
B) prior cash flows are irrelevant
C) all cash flows from the old asset are zero
D) cash inflows equal cash outflows

Question

Quizplus · Accepted Answer

Prior cash flows are irrelevant when developing the cash flows for an expansion project, just as they are for replacement projects.

In Developing the Cash Flows for an Expansion Project, the Analysis