Which of the following statements is/are TRUE with respect t…
Which of the following statements is/are TRUE with respect to the relevance of cash flows in capital budgeting decisions? I. Initial project cash outflows may include the initial investment and any working capital required to kick-start the investment. II. Operational cash flows include cash inflows from sales or inflows from increased operating expenses, as well as cash outflows like preventative maintenance and environmental costs. III. Cash flows at disposal (end of project) may include cash inflows such as the return of any working capital and the sale of equipment at salvage value.