Some Investment Projects Require That a Company Increase Its Working

question 160

Multiple Choice

Some investment projects require that a company increase its working capital. Under the net present value method, the investment and eventual recovery of working capital should be treated as:

• A) an initial cash outflow.
• B) a future cash inflow.
• C) both an initial cash outflow and a future cash inflow.
• D) irrelevant to the net present value analysis.

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Definitions:

HI

A chemical formula representing hydrogen iodide, a diatomic molecule consisting of hydrogen and iodine.

pH

A scale used to specify the acidity or basicity of an aqueous solution, ranging from 0 (acidic) to 14 (basic), with 7 being neutral.

K

The chemical symbol for Potassium, an essential dietary mineral and electrolyte involved in nerve function, muscle contraction, and fluid balance.

HA

Depending on context, this can refer to Hyaluronic Acid, a molecule involved in skin hydration and cellular functions, or Hemagglutinin, a protein on the surface of influenza viruses responsible for binding the virus to the host cell.