Net Working Capital Is Expected to Increase by $25,000 Over

question 57

Multiple Choice

Net working capital is expected to increase by $25,000 over the 5-year life of a project. What is the effect of net working capital on the project's net present value if the cost of capital is 15%?

• A) NPV will not be affected because the $25,000 will all be recouped.
• B) NPV will increase by $12,429.42.
• C) NPV will decrease by $25,000.
• D)NPV will decrease by $12,570.58.

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Definitions:

Continuous Subcutaneous Infusion

A method of drug administration using a pump to deliver medication under the skin at a constant rate, often used in pain management and palliative care.

Esophagectomy

A surgical procedure to remove part or all of the esophagus, often due to cancer or severe damage.

Pain Pump

A medical device that allows for the controlled self-administration of pain medication directly into the patient's body, often used for postoperative pain management.