All Else Equal,a Project's Operating Cash Flow Will Increase When

question 56

Multiple Choice

All else equal,a project's operating cash flow will increase when the

• A)net working capital requirement increases.
• B)sales projections are lowered.
• C)interest expense is lowered.
• D)depreciation expense increases.
• E)earnings before interest and taxes decreases.

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Definitions:

Par Value

A nominal value assigned to a security by the issuer, often used to determine the minimum price of shares issued by a corporation.

Fair Value

The trading price of an asset or the funding needed to transfer a liability in a well-coordinated market move at the assessment point.

Voting Shares

Shares that give the shareholder the right to vote on important issues such as electing directors and approving mergers.