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Identify the three main sources of cash flows over the life of a typical project.

a. Net cash flows from salvage value at the end of the project.
b. Net cash flows from sales and expenses over the life of the project.
c. Test marketing expenses that have been classified as sunk costs.
d. Cash outflows from investment in plant and equipment at the inception of the project.

Sagot :

anthougo

The three main sources of cash flows over the life of a typical project are:

a. Net cash flows from salvage ...

b. Net cash flows from sales and ...

d. Cash outflows from investment ...

The main sources of cash flows fall under these categories: operations, investing, and financing for every typical business entity.  Test marketing expenses are not accounted for in the life of a project.  It is discretionary.

Thus, the cash flows over the life of a project are options a, b, and d.

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