Which of the Following Statements Regarding Investment in Working Capital

question 20

Multiple Choice

Which of the following statements regarding investment in working capital is incorrect?

• A) Investment in working capital, unlike investment in plant and equipment, represents a positive cash flow.
• B) The cash flow is measured by the change in working capital, not the level of working capital.
• C) The working capital may change during the life of the project.
• D) Working capital is recovered at the end of the project.

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Definitions:

Monetary Policy

Means by which the Fed controls the amount of money available in the economy.