Assuming taxes are a consideration, which of the following would not have an overall positive effect on cash inflows when a company is computing the net present value of a potential capital investment?

Question

Quizplus · Accepted Answer

The initial capital investment would decrease cash inflows, as it is a cost that needs to be paid upfront. The other options all have the potential to increase cash inflows, either through increased revenue (salvage value), reduced costs (cost savings per year), or tax benefits (depreciation expense).

Assuming Taxes Are a Consideration, Which of the Following Would