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True or False (If False please explain why) Thanks! Sale of a piece of equipment at a gain reduces the CF from salvage. The installation

True or False (If False please explain why) Thanks!

  1. Sale of a piece of equipment at a gain reduces the CF from salvage.
  2. The installation cost is added to the accumulated depreciation of an asset to get the initial capital investment.
  3. Coca-Cola needed to purchase additional inventory of plastic bottles to launch its Pulsar Cola. This decrease in inventory represents a positive cash flow associated with the project.
  4. Opportunity costs add to aproject's cash flows while erosion costs and synergy gains reduce those cash flows.

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