Which of the following is not a relevant item to consider in cash flow estimation?
A) a change in current assets invested in the project.
B) a change in current liabilities to finance new inventories.
C) regular meeting fees for the board of directors incurred when the go-no go decision is made.
D) any net changes in working capital over the life of the investment.

Question

Quizplus · Accepted Answer

Regular meeting fees for the board of directors incurred when the go-no go decision is made do not have any impact on the cash flows of the project and, therefore, are not relevant in cash flow estimation. A, B, and D are all relevant items to consider as they all impact the cash flows of the project.

Which of the Following Is Not a Relevant Item to Consider