A New Project Is Expected to Generate an Operating Cash

question 104

Multiple Choice

A new project is expected to generate an operating cash flow of $38,728 and will initially free up $11,610 in net working apital.Purchases of fixed assets costing $52,800 will be required to start up the project.What is the total cash flow for this project at Time zero?

• A)-$64,410
• B)-$41,190
• C)-$52,800
• D)$25,682
• E)$50,338

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Definitions:

Farsighted Organization

An organization that plans and acts with a long-term perspective, focusing on sustainable success rather than immediate gains.

Valuable Human Resource

Refers to employees who are highly beneficial to an organization due to their skills, talents, and contributions.

Labor

The effort by people to produce goods or services that have economic value.

Event Timing Forecast

The prediction of when certain events are likely to occur, often used in planning and strategy development.