A business is evaluating a potential investment in a training program for employees that will cost $45 000 today. The training is expected to save $15 000 every year for the next 5 years. What cash flows would be evaluated for capital expenditure analysis?
A) Initial cash flow of $45 000 only.
B) Outflows of $15 000 every year for the next 5 years only.
C) Initial cash flow of $45 000 plus inflow of $15 000 every year for the next 5 years.
D) None, as this is an operating expenditure analysis, not a capital expenditure analysis
Correct Answer:
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