When Terminating a Project for Capital Budgeting Purposes,the Working Capital

question 23

Multiple Choice

When terminating a project for capital budgeting purposes,the working capital outlay required at the initiation of the project will

• A)not affect the cash flow.
• B)decrease the cash flow because it is a historical cost.
• C)increase the cash flow because it is recaptured.
• D)decrease the cash flow because it is an outlay.

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Definitions:

Active Voice

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Passive Voice

A grammatical voice in which the subject is the recipient of an action rather than the performer, often used to emphasize the action or the object of an action.

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