Which of the following items is not considered as a part of the net investment calculation?
A)the first year's net cash flow
B)increase in net working capital
C)salvage of an old piece of equipment that is being replaced
D)installation and shipping charges

Question

Quizplus · Accepted Answer

The first year's net cash flow is not part of the net investment calculation; it is part of the cash flow analysis for the project's operational phase. Net investment typically includes initial outlays such as equipment costs, installation, shipping, and changes in working capital.

Which of the Following Items Is Not Considered as a Part