Typical cash inflows of a capital investment project include all of the following EXCEPT: A. projected incremental revenues from the project. B. cost reductions in operating costs. C. the salvage value of the investment at the end of its useful life. D. tax savings generated by depreciation expense. E. the original cost paid for the capital investment.

E

Explanation:

Cash inflows are cash increases in a project

they include :

projected incremental revenues from the project.

cost reductions in operating costs.

the salvage value of the investment at the end of its useful life

tax savings generated by depreciation expense.

Cash outflows reduces the cash available in a project. They are usually subtracted

they include

the original cost paid for the capital investment.

working capital investment

A project is profitable if cash inflow exceeds cash outflow

answer; (b) insider trading;