Some Investment Projects Require That a Company Expand Its Working

question 180

Multiple Choice

Some investment projects require that a company expand its working capital to service the greater volume of business that will be generated.Under the net present value method,how should the investment of working capital be treated?

• A) An initial cash outflow for which no discounting is necessary.
• B) A future cash inflow for which discounting is necessary.
• C) Both an initial cash outflow for which no discounting is necessary and a future cash inflow for which discounting is necessary.
• D) Irrelevant to the net present value analysis.

---

Definitions:

Michael Dukakis

An American politician who served as the Governor of Massachusetts and was the Democratic presidential nominee in 1988.

Americans with Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public.

Civil Rights Reforms

Legislative and societal changes aimed at eliminating racial discrimination and advancing equal rights for all citizens, particularly those concerning voting rights, education, and employment.

President George H. W. Bush

The 41st President of the United States, who served from 1989 to 1993, known for his leadership during the Gulf War and the end of the Cold War.