In Evaluating the Initial Investment for a Capital Budgeting Project

question 30

Multiple Choice

In evaluating the initial investment for a capital budgeting project, ________.

• A) an increase in net working capital is considered a cash inflow
• B) a decrease in net working capital is considered a cash outflow
• C) an increase in net working capital is considered a cash outflow
• D) net working capital does not have to be considered

---

Definitions:

Subtle Messages

Indirect or not immediately obvious communications often conveyed through nuances or body language.

Upward Communication

The flow of information from subordinate levels to superior levels in an organization's hierarchy.

Downward Communication

The flow of information from higher levels of an organization's hierarchy to the lower levels, often for directives, updates, or feedback.

Active Listening

A communication technique involving giving full attention to the speaker, understanding their message, and providing appropriate feedback.