A New Project Requires an Increase in Both Current Assets

question 13

Multiple Choice

A new project requires an increase in both current assets and current liabilities of $125,000 each.What is the overall impact on net working capital investment?

• A) An increase of zero
• B) An increase of $125,000
• C) An increase of $250,000
• D) An increase of $62,500, when averaged over the life of the project

---

Definitions:

Transformational

Refers to a style of leadership where leaders inspire and motivate employees to exceed their own self-interests for the good of the organization and to create significant changes.

Path-Goal

A leadership theory that suggests a leader's function is to clear the path towards the achievement of group or organizational goals, thereby increasing employee satisfaction and productivity.

Adaptive

Referring to the ability or tendency to adjust or change in response to different conditions or environments.

Authentic Leadership

A style of leadership that emphasizes being genuine and transparent with followers, focusing on mutual trust and ethical standards.