alleryStart learning →Long term investments, once made, cannot be reversed without what?
AA change in the tax law rules
BA fall in the market interest rate
CA significant loss of invested capital
DPermission from the stock exchange
Answer & Solution
Correct answer: C. A significant loss of invested capital
The money becomes locked in the project, so reversing it means a significant loss of the invested capital.
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Related questions
Under which cash flow statement section is capex commonly reported?Which spending is capital expenditure as it extends asset life?Which of these spending items is a capital expenditure?Where do capitalised expenditures show up in the financial statements?Which expense is the counterpart of capital expenditure?What is capital expenditure (capex)?Payback also ignores which part of a project's cash flows?Which key weakness does the simple payback period have?