Making Capital Investment Decisions

7 important questions on Making Capital Investment Decisions

What is relavant cashflow?

See p

What are incremental cashflows?

See p and inc
-sunk cost
-opportunity cost
-side effects

What are Sunk cost?


•A cost that has already been incurred and cannot be removed and therefore should not be considered in an investment decision
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

What are side effects of incremental cash flow?


••The cash flows of a new project that come at the expense of a firm’s existing projects.

What are Pro Forma Financial Statements

Financial statements projecting future years’ operations

What is balace depreciation?


•A depreciation method allowing for the accelerated write-off of assets under various classifications

What are Equivalent Annual Cost?

The present value of a project’s costs calculated on an annual basis

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo