How Does Net Working Capital Affect the NPV of a 5-Year

question 68

Multiple Choice

How does net working capital affect the NPV of a 5-year project if working capital is expected to increase by $25,000 and the firm has a 15% cost of capital?

• A) NPV will increase by $9,322.
• B) NPV will increase by $12,571.
• C) NPV will decrease by $25,000.
• D) NPV will decrease by $12,571.

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Definitions:

Night Terrors

A sleep disorder causing feelings of terror or dread, typically occurring in the non-REM sleep phases, often accompanied by screaming or flailing and with little to no recollection of the dream content upon waking.

Nightmares

Distressing dreams that wake the sleeper, often involving feelings of fear, anxiety, or sorrow.

Uncontrollable Sleepiness

Excessive drowsiness that cannot easily be controlled or resisted, often indicative of underlying sleep disorders.

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A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep, often with cataplexy.