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:

Attraction Structure

The pattern or framework of how attractions (social, sexual, or otherwise) are organized within a social group or society.

Interactionist Theory

A theory that emphasizes that the development of individuals is shaped by the interaction of personal characteristics and the environmental or social context.

Psychological Dynamic

The interplay of various psychological forces or factors that influence behavior and mental states.

Task Roles

Specific functions or responsibilities undertaken by members of a team or group to achieve the collective objective effectively.