When a new piece of equipment is purchased,which of the following would be considered a cash inflow?

Question

Quizplus · Accepted Answer

All of these choices are correct because they all represent cash inflows. Cost savings represent a reduction in expenses, which increases cash flow. Salvage value represents the amount of money that can be recovered from selling the equipment at the end of its useful life, which is also a cash inflow. Additional revenue generated represents an increase in sales, which also increases cash flow.

When a New Piece of Equipment Is Purchased,which of the Following