Typically,a capital expenditure project will result in:

Question

​Typically,a capital expenditure project will result in:

Quizplus · Accepted Answer

Capital expenditure projects usually involve an initial cash outflow, often in the first year, to acquire or improve assets such as property, plant, and equipment. However, if the project is expected to generate cash inflows over a period of time, it may still be deemed viable and worthwhile. Therefore, the correct option is C, which is an initial (one-year) outflow followed by a series of cash inflows. Option A is incorrect because not all capital expenditure projects necessarily result in positive cash flows, as some may fail or generate lower-than-expected returns. Option B is too broad and does not distinguish between different types of capital expenditures. Option D is also incorrect because the time horizon for identifying and evaluating capital expenditure projects may vary depending on factors such as the industry, the company's strategic goals, and the availability of funding.

​Typically,a Capital Expenditure Project Will Result In

Typically,a Capital Expenditure Project Will Result In