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

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Definitions:

Mere Contact

relates to the phenomenon where increased exposure to something or someone leads to a more positive evaluation of that object or person.

Prejudices

Preconceived opinions or judgments about people or situations that are not based on reason or actual experience.

Within Group Friendships

Relationships characterized by personal bonds and affinities that develop among members within the same group or team.

Probing Teams

Teams that are designated or tasked to investigate, analyze, and find solutions to complex issues or unknown problems within an organization.