Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)Most projects will require the firm to invest in net working capital.
• B)The main components of net working capital are cash,inventory,receivables,and property,plant and equipment.
• C)ΔNWC_t = NWC_t - NWC_{t - 1.}
• D)In the final year of a project,the firm ultimately recovers the investment in net working capital.

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Definitions:

New Geographies

Expansion or exploration into new geographical areas or markets by businesses seeking growth or diversification.

New Profit Pools

Areas within a market where new revenue and profit can be generated, often identified through changes in consumer behavior or emerging trends.

New Customer Segments

Identifying and targeting previously unrecognized groups of customers with specific needs or preferences within a market.

Diversification Strategy

A business approach that involves entering into new markets or creating new products to spread risk and depend less on a single market or product line.