Consider a project that requires the purchase of equipment for $10,000 and increases working capital by $500. The company must spend $1,000 to install the equipment. The investment cash flow is closest to:

Question

Quizplus · Accepted Answer

The investment cash flow includes the purchase of equipment ($10,000), installation costs ($1,000), and the increase in working capital ($500), totaling $11,500.

Consider a Project That Requires the Purchase of Equipment for $10,000