Changes in Net Working Capital Should Not Be Reflected in a Capital

question 45

True/False

Changes in net working capital should not be reflected in a capital budgeting cash flow analysis because capital budgeting relates to fixed assets, not working capital.

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Definitions:

Response

A reaction to a specific stimulus or situation, which can be psychological, physiological, or behavioral.

Delay

The act of postponing or holding off an event, action, or operation.

Avoidance Conditioning

A learning process in which an individual learns to prevent the occurrence of a negative or unpleasant outcome.

Classical Conditioning

An instructive procedure where two stimuli are regularly associated, causing a response at first provoked by the second stimulus to later be provoked by the first stimulus exclusively.