Which of the following is not a typical cash flow related to equipment purchase and replacement decisions?

Increased operating costs

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Overhaul of equipment

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Salvage value of equipment when project is complete

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Depreciation expense

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Solution

The correct option is D Depreciation expense
Depreciation expense :Intangible benefits in capital budgeting would include all of the following except increased entire initial investment will not be recovered.The cash payback period is computed by dividing the cost of the capital.

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Which of the following is not a typical cash flow related to equipment purchase and replacement decisions?

The correct option is D Depreciation expenseDepreciation expense :Intangible benefits in capital budgeting would include all of the following except increased entire initial investment will not be recovered.The cash payback period is computed by dividing the cost of the capital.

The correct option is D Depreciation expense
Depreciation expense :Intangible benefits in capital budgeting would include all of the following except increased entire initial investment will not be recovered.The cash payback period is computed by dividing the cost of the capital.