Changes in Net Working Capital

question 37

Multiple Choice

Changes in net working capital

• A)are included in project analysis only if they represent cash outflows.
• B)only affect the initial cash flows of a project.
• C)can affect the cash flows of a project every year of the project's life.
• D)are generally excluded from project analysis due to their irrelevance to the total project.
• E)affect the initial and the final cash flows of a project but not the cash flows of the middle years.

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Definitions:

Balanced Vane Pump

A type of hydraulic pump characterized by its design that balances the hydraulic forces to reduce wear and extend the pump's life.

Outlet Port

An exit point on a device or machine where substances (fluid or gas) are expelled or discharged.

Hydraulic Pump

A device that converts mechanical energy into hydraulic energy by forcing fluid from a reservoir into a hydraulic system.

Rpm

Stands for revolutions per minute, a measure of the frequency of rotation, specifically the number of rotations around a fixed axis in one minute.