Tax loss at the disposal of capital assets

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Tax

Why is there typically a tax gain or tax loss at the disposal of capital assets?

Working Capital

Why must a company typically invest in working capital when starting a new project? Why is this investment in working capital recovered at the completion of the project?

Sunk Cost

What is a sunk cost? Why are sunk cost excluded from the incremental cash flow of a project? Does this mean that they were wasted expenses? Why or why not?

Reference no: EM131931684

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