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:

Conglomerate

A coarse-grained sedimentary rock composed of rounded fragments larger than 2 mm in diameter, embedded in a matrix of finer particles and cemented together.

Breccia

Breccia is a coarse-grained sedimentary rock composed of angular fragments of minerals or rocks cemented together, often formed in fault zones or as volcanic ejecta.

Sandstone

A sedimentary rock formed by the consolidation and compaction of sand, often containing minerals like quartz or feldspar.

Sedimentary Clasts

Pieces of rock or mineral fragments that are transported and deposited by wind, water, or ice, then compacted and cemented into sedimentary rock.