Working Capital Is a Frequent Source of Errors in Estimating

question 24

Multiple Choice

Working capital is a frequent source of errors in estimating project cash flows. These errors include

• A)forgetting about working capital entirely and forgetting that working capital may change during the life of the project.
• B)forgetting about working capital entirely, forgetting that working capital may change during the life of the project, and forgetting that working capital is recovered at the end of the project.
• C)forgetting that working capital may change during the life of the project, forgetting that working capital is recovered at the end of the project, and forgetting to depreciate working capital.
• D)forgetting about working capital entirely, forgetting that working capital may change during the life of the project, and forgetting to depreciate working capital.

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Definitions:

Prochlorperazine

An antiemetic and antipsychotic medication used to control severe nausea and vomiting and to treat schizophrenia.

Nausea

A feeling of sickness with an inclination to vomit, which can be a symptom of numerous conditions or a side effect of medication.

PO

An abbreviation for "per os," a Latin phrase meaning "by mouth," used in medical prescriptions to indicate that a medication should be taken orally.

Lanoxin

A brand name for digoxin, a medication used to treat heart conditions by increasing the strength and efficiency of heart contractions.