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Which of the following would be considered a cash outflow in the investing activities section of the statement of cash flows? a Purchase of equipment.
Which of the following would be considered a cash outflow in the investing activities section of the statement of cash flows? a Purchase of equipment. b Dividends paid to the company's own stockholders. c Retirement of bonds payable. d Payment of interest to a lender. 2 A company can have a net loss and still generate a positive net cash provided by operating activities in its statement of cash flows. True False 3 Mcclam, Inc., is considering the purchase of a machine that would cost $100,000 and would last for 9 years. At the end of 9 years, the machine would have a salvage value of $23,000. The machine would reduce labor and other costs by $19,000 per year. Additional working capital of $2,000 would be needed immediately. All of this working capital would be recovered at the end of the life of the machine. The company requires a minimum pretax return of 13% on all investment projects. The net present value of the proposed project is closest to: (Ignore income taxes.) a $5,167 b $3,833 c $11,514 d $2,492
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