The success of the investment depends on the amount of?

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Prepare for UCF's ENT4412 Managing Small Business Finances Final Exam with targeted flashcards and multiple choice questions, complete with detailed hints and explanations. Ace your test with confidence!

The correct answer focuses on net future cash inflows or future cash savings in relation to the cost because it emphasizes the importance of evaluating the actual financial benefits derived from an investment after accounting for all associated costs over time. This approach provides a clearer picture of an investment's profitability.

Net future cash inflows represent the total expected cash inflows reduced by any expected outflows during the investment's lifetime. It takes into consideration the time value of money, making it a crucial factor when assessing long-term investments. By analyzing the net cash flows, an investor can determine whether the returns justify the investment made.

Future cash savings also play a significant role, as they reflect potential reductions in costs that the investment might achieve over time. This dual focus on net cash inflows and savings compared to the initial investment cost gives a comprehensive view of the investment's financial viability.

This contrasts with other options that may not adequately consider the net aspect of cash flows or the relevance of time in the assessment, potentially leading to an overestimation of an investment's worth without accounting for costs or the timing of cash flows.