A New Project Requires an Increase in Both Current Assets

question 62

Multiple Choice

A new project requires an increase in both current assets and current liabilities of $125,000 each.What is the overall impact on net working capital investment?

• A)an increase of zero.
• B)an increase of $125,000.
• C)an increase of $250,000.
• D)an increase of $62,500, when averaged over the life of the project.

---

Definitions:

Physical Abuse

The infliction of bodily injury or harm intentionally by another person, which can include hitting, burning, or any other physical attack.

Critical Thinking

The process of actively analyzing, synthesizing, and evaluating information gathered from observation, experience, reflection, or communication.

Confidence

The feeling or belief that one can rely on someone or something; self-assurance arising from one's appreciation of one's own abilities or qualities.

Clinical Decision Making

The process by which healthcare providers assess and consider various factors and evidence to make informed patient care decisions.