Question

Which one of the following is NOT part of the estimated net investment (NINV) for a capital budgeting project? The estimated salvage value of the new assets at the end of their 10-year expected economic life. The immediate increase in net working capital required by the project. The after-tax salvage value of assets to be replaced by the project. The cost of new assets required by the project

Answer 1

The correct answer to the following question will be Option A.

Step-by-step explanation:

• Net investment or expenditure seems to be the total money that a business invests on financial assets, less the deferred revenue of those resources. This statistic gives people a sense of real spending on capital products such as plants, machinery, including technology used throughout the activities of the business.
• The effective improvement including its program's net income, after-tax recovery value of the properties to have been substituted by the task.

So that the above option A is not related to the given scenario.