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    Management Accounting Study Set 1
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    Exam 10: Capital Budgeting Decisions
  5. Question
    The Cash Inflow Effect of a Disposal at a Loss
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The Cash Inflow Effect of a Disposal at a Loss

Question 10

Question 10

Multiple Choice

The cash inflow effect of a disposal at a loss is equal to the


A) amount of the loss plus the tax savings.
B) amount of the loss minus the tax savings.
C) selling price plus the tax savings.
D) selling price minus the tax savings.

Correct Answer:

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