One Should Consider Net Working Capital (NWC)in Project Cash Flows

question 17

Multiple Choice

One should consider net working capital (NWC) in project cash flows because

• A)typically firms must invest cash in short-term assets to produce finished goods.
• B)NWC represents sunk costs.
• C)firms need positive NPV projects for investment.
• D)inclusion of NWC typically increases calculated NPV.

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Definitions:

Mary McLeod Bethune

An African American educator and civil rights leader who founded the National Council of Negro Women and played a significant role in the New Deal government.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to counteract the effects of the Great Depression.

Agricultural Policies

Strategies and regulations implemented by governments to influence their agricultural sector's economic activities, including subsidies, tariffs, and farming guidelines.

Landless Farmworkers

Agricultural laborers who do not own the land on which they work, often living in conditions of poverty and dependency.