What is the difference between the initial cash flow and the purchase price of an asset?

Question

Quizplus · Accepted Answer

The initial cash flow includes not only the purchase price but also any other capital costs related to acquiring the asset, such as installation or delivery fees. Additionally, net working capital requirements may need to be considered. A and B are incorrect as they only partially address the components of initial cash flow. D is incorrect as there is a clear difference between initial cash flow and purchase price.

What Is the Difference Between the Initial Cash Flow and the Purchase