Q132
Working capital cash outflow, cash outflow to buy machine and cash inflow from machine are examples of
A.
cash flow from operations
B.
terminal disposal of investment
C.
net initial investment
AnswerD.
average return on investment
Answer: Option C
Solution
Answer: Option C
Solution:
Working capital cash outflow, cash outflow to buy machine and cash inflow from machine are examples of net initial investment. Net investment is the amount spent by a company or an economy on capital assets, or gross investment, less depreciation. Net investment helps give a sense of how much money a company is spending on capital items used for operations, such as property, plants, equipment, and software.