A reduction in a cash outflow _____.

Name: A reduction in a cash outflow _____.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A reduction in a cash outflow is treated as a cash inflow because it increases the amount of cash available to the company. This is relevant for capital budgeting decisions as it affects the cash flows used in determining the project's net present value (NPV) or internal rate of return (IRR). Choices B, C, and D are incorrect because they do not describe the effects of a reduction in a cash outflow accurately.

A Reduction in a Cash Outflow _____