Working Capital Is a Frequent Source of Errors in Estimating

question 59

Multiple Choice

Working capital is a frequent source of errors in estimating project cash flows.These errors include:
I.forgetting about working capital entirely;
II.forgetting that working capital may change during the life of the project;
III.forgetting that working capital is recovered at the end of the project;
IV.forgetting to depreciate working capital

• A)I and II only
• B)I,II,and III only
• C)II,III,and IV only
• D)I,II,and IV only

---

Definitions:

M-cresol

An organic compound, a type of methylphenol, where the methyl group is positioned meta to the hydroxyl group on a benzene ring.

M-toluidine

An organic compound, specifically a derivative of toluene, with a methylene group (-CH3) attached to the benzene ring at the meta position relative to an amino group.

Ethylisopropylamine

An organic compound containing an ethyl group, an isopropyl group, and an amine group in its molecular structure.

Ethylamine

An organic compound with the formula CH3CH2NH2, a colorless gas with an ammonia-like odor, used in chemical synthesis.