Final answer:
A capital investment project can provide cash inflows from incremental revenues, cost savings, and the salvage value of the investment. Collectively, all these sources are correct for providing cash inflows, and firms finance such investments through various means including reinvesting profits, borrowing, or seeking investors. So, the correct option is d. all of these answers are correct.
Step-by-step explanation:
A capital investment project may provide cash inflows from various sources, which are essential for the growth and sustainability of a firm. These cash inflows can arise from incremental revenues, which are additional earnings that come from the increase in sales or services provided due to the investment. Another source is cost savings, where the investment helps in reducing the expenses of the business, thus increasing the overall profits.
Lastly, capital investment can also lead to inflows from the salvage value of the investment, which is the residual value at the end of its useful life. Firms finance these projects through different means, from seeking early-stage investors to reinvesting profits, taking loans from banks or bonds, and issuing stock. The choice of finance affects the returns and costs associated with the capital investment. Considering all sources of potential cash inflows, the answer to the question is that a capital investment project may provide cash inflows from d. All of these answers are correct.