A Proposed Project Requires an Initial Investment of $8,500 in Current

question 102

Multiple Choice

A proposed project requires an initial investment of $8,500 in current assets,75% of which will be financed with accounts payable.The project will have:

• A) an initial cash outflow of $8,500 at time zero for net working capital.
• B) a cash outflow for net working capital at the end of the project.
• C) a cash inflow at the end of the project from net working capital.
• D) a cash outflow for net working capital every year of the project's life.

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