Question

Capital investments frequently require significant amounts of money over an extended period of time. The following are examples of typical cash flows associated with capital investments.
a. Reductions in operating expenses
b. Original investment in a project
c. Additional operating costs that are required
d. Incremental revenue received from a project
e. Cost of repairs and maintenance needed for equipment
f. Salvage value of an investment at the end of its useful life
g. Release of working capital at the end of a project

Required
Classify each of the above cash flows as either an “inflow” or an “outflow.”



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  • CreatedMarch 11, 2015
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