Which of the following is NOT a component of the initial after-tax cash flow?

Question

Quizplus · Accepted Answer

The original cost of a capital asset that was incurred several years ago is not a component of the initial after-tax cash flow as it is a sunk cost and should not be considered in the analysis of a new project. The components of the initial after-tax cash flow include the initial capital cost of the asset, the change in net working capital requirements, and the opportunity costs associated with the project.

Which of the Following Is NOT a Component of the Initial