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:

Acquiring Companies

Companies that acquire control of other companies by buying a majority of their stocks or assets, effectively making them subsidiaries.

Issued Capital

The total value of a company’s shares that have been issued or sold to shareholders.

Net Assets

The total assets of a company minus its total liabilities, indicating the actual value of a company's equity.

Acquisition

An acquisition involves one company purchasing most or all of another company's shares or assets, effectively taking control over the acquired company.