Which of the following is not a relevant cash flow in capital budgeting?
A)after-tax cash flow from current disposal of old asset
B)after-tax cash flow from future disposal of asset at life's end
C)after-tax cash flow from accumulated depreciation
D)initial asset investment of the replacement machine
E)after-tax annual cash flows relating to the new asset

Question

Quizplus · Accepted Answer

Accumulated depreciation is a non-cash expense and therefore not a relevant cash flow in capital budgeting. The other options are all relevant cash flows to consider.

Which of the Following Is Not a Relevant Cash Flow