When making a capital budgeting decision, which of the following is usually NOT discounted?

Question

Quizplus · Accepted Answer

The original purchase price paid in cash is usually not discounted because it represents a past cost that cannot be changed or recovered. It is important to consider the cost when making the initial decision to purchase the asset, but it is not relevant to the future cash flows used in the capital budgeting analysis. The other options (B, C, and D) are all future cash flows and should be discounted to their present value when making the capital budgeting decision.

When Making a Capital Budgeting Decision, Which of the Following