The Board of Directors Is Considering Approving a Plant Expansion

question 24

Multiple Choice

The board of directors is considering approving a plant expansion which will require a sizable advance payment to take place early this year.How will this decision affect the period's cash flows from investing?

• A)It will increase this period's cash flows from investing.
• B)It will decrease this period's cash flows from investing.
• C)It will not affect this period's cash flows from investing.
• D)This is not listed in the statement of cash flows.