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Which of the following is not a relevant cash flow?Initial investmentWorking capitalSunk costsAfter-Tax Operating incomeDepreciation tax savings

Question

Which of the following is not a relevant cash flow?Initial investmentWorking capitalSunk costsAfter-Tax Operating incomeDepreciation tax savings
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Solution 1

The cash flow that is not relevant among the options provided is the Sunk costs.

Here's why:

  1. Initial Investment: This is the initial outlay of cash needed to start a project or investment. It's relevant because it's a direct cost that needs to be recovered through the cash flows generated by t Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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