All of the following are anticipated effects of a proposed project.Which of these should be considered when computing the cash flow for the final year of the project?
A)Operating cash flow and salvage values only
B)Salvage values and net working capital recovery only
C)Operating cash flow,net working capital recovery,salvage values
D)Net working capital recovery and operating cash flow only
E)Operating cash flow only

Question

Quizplus · Accepted Answer

When computing the cash flow for the final year of the project, we need to consider all the factors that can affect the cash flow. Operating cash flow represents the cash generated by the project's operations in the final year. Net working capital recovery is the cash received from the recovery of the project's current assets and liabilities. Salvage values represent the cash received from selling the project's long-term assets at the end of their useful life. Therefore, all three factors should be considered when computing the cash flow for the final year of the project.

All of the Following Are Anticipated Effects of a Proposed