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StormLrd StormLrd
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6 years ago
A capital investment project typically has three categories of cash flows: (1) net initial investment; (2) cash flow from operations; and (3) terminal disposal and recovery of investment(s)

Required:
Complete the following list of components for each category:

Net initial investment
1.   cost of asset acquisition
2.   ________
3.   ________

Cash flow from operations
1.   ________
2.   ________

Terminal disposal and recovery of investment(s)
1.   ________
2.   ________
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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wrote...
6 years ago
Net initial investment
1.   cost of asset acquisition
2.   initial working capital investment
3.   after-tax cash flow from current disposal of old asset

Cash flow from operations
1.   annual after-tax cash flow from recurring operations
2.   income tax cash savings from annual CCA

Terminal disposal and recovery of investment(s)
1.   after-tax cash flow from terminal disposal of machines
2.   after-tax cash flow from terminal recovery of working capital investment
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