Changes in the Net Working Capital Requirements

question 92

Multiple Choice

Changes in the net working capital requirements:

• A)can affect the cash flows of a project every year of the project's life.
• B)only affect the initial cash flows of a project.
• C)only affect the cash flow at time zero and the final year of a project.
• D)are generally excluded from project analysis due to their irrelevance to the total project.
• E)reflect only the changes in the current asset accounts.

---

Definitions:

Social Security Benefits

Payments made to qualified individuals from the Social Security Administration, typically for retirement, disability, or survivorship.

Tax-Exempt Interest

This is interest income that is not subject to federal income tax, and in some cases, state or local taxes. Such interest is often earned from bonds issued by municipal, state, or other government entities.

Educational Assistance

Programs or benefits provided by employers or the government to help cover education expenses for students.

Fringe Benefit

Additional compensation provided to employees beyond their normal wages, such as health insurance, company cars, or retirement plans.