List and briefly describe the five major categories of cash flows included in capital investment projects.

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Part 1

List the five major categories of cash flows included in capital investment projects.

Step

Name

1

2

3

4

5

Cash flow from current disposal of old machine Cash flow from terminal disposal of machine and recovery of working capital Cash outflow for residual value of machine Income tax impacts on cash flows Initial investment in machine and working capital Recurring operating cash flows Terminal disposal price of investment