Question
Lazer Focus Inc. is purchasing items such as inventory, spare parts, and supplies. How would these expenses be considered in an NPV analysis of a
Lazer Focus Inc. is purchasing items such as inventory, spare parts, and supplies. How would these expenses be considered in an NPV analysis of a potential capital project?
Select answer from the options below
These expenses would be added to the initial investment and are cash outflows.
These are working capital investments and are cash outflows.
These expenses would not be considered in an NPV analysis since they are not part of the capital project asset.
These expenses would be considered a return of working capital investment and are a cash inflow.
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