Some Investment Projects Require That a Company Increase Its Working

question 160

Multiple Choice

Some investment projects require that a company increase its working capital. Under the net present value method, the investment and eventual recovery of working capital should be treated as:

• A) an initial cash outflow.
• B) a future cash inflow.
• C) both an initial cash outflow and a future cash inflow.
• D) irrelevant to the net present value analysis.