What Effect Is Expected at the End of the Life

question 9

Multiple Choice

What effect is expected at the end of the life of a project that initially required a $20,000 increase in net working capital?

• A)the $20,000 must now be paid by the firm
• B)the firm receives a $20,000 cash inflow
• C)taxable income is reduced by $20,000
• D)no effects are expected from sunk costs

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