Question 22 3. Which of the following statements is true regarding a replacement decision? O An increase in the net working capital is treated as an inflow when the project begi ns (initial investment outlay) and as an outflow when the project ends (terminal cash flow). O The net cash flow from the sale of an old equipment is treated as an outflow at t- 0 (initial investment outlay). O Any loss on the sale of the old equipment is multiplied by the tax rate and is treated as an outflow at t-0 (initial investmen outlay). O The benefits resulting from the new investment is treated as an inflow. O The depreciation expenses on the new equipment is treated as an outflow. Nex Previous 842/take/ ions/82296555