The initial outlay includes the cost of purchasing the asset and getting is operational,but this excludes any training costs for employees which should be included as part of differential cash flows over the life of the project.

Question

Quizplus · Accepted Answer

The statement is incorrect. Training costs for employees should be included as part of the initial outlay, as they are a necessary cost for getting the asset operational.

The Initial Outlay Includes the Cost of Purchasing the Asset