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.

---

Definitions:

Dividends Per Share

A measure of the dividend payment a shareholder receives for each share of stock held, calculated as the total dividends paid divided by the total number of shares.

Shares Of Stock

Shares of stock represent units of ownership in a corporation, entitling the holder to a proportion of the company's profits and voting rights.

Cash Flow

The whole amount of funds that are being transferred into and out of a company, affecting its immediate financial viability.

Assets

Resources owned by a company from which future economic benefits are expected.