Under the indirect method of estimating project cash flows, an increase in trade creditors in a given year as a result of a project would be treated in what way? Treated as a cash inflow Treated as a cash outflow Excluded from the cash flow analysis as this is a sunk cost Excluded from the cash flow analysis as no cash has been paid or received
Under the indirect method of estimating project cash flows, an increase in trade creditors in a given year as a result of a project would be treated in what way? Treated as a cash inflow Treated as a cash outflow Excluded from the cash flow analysis as this is a sunk cost Excluded from the cash flow analysis as no cash has been paid or received
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11MC: The NPV method assumes that cash inflows associated with a particular investment occur when? A. only...
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Under the indirect method of estimating project cash flows , an increase in trade creditors in a given year as a result of a project would be treated in what way?
Treated as a cash inflow
Treated as a cash outflow
Excluded from the cash flow analysis as this is a sunk cost
Excluded from the cash flow analysis as no cash has been paid or received
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