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.

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Definitions:

Positive Regard

A concept in psychology that implies accepting and supporting someone without judgment.

Tearful Patient

A patient who is crying or showing significant emotional distress, often as part of their expression of feelings or reaction to events.

Therapeutic Relationship

A professional, ethical, and supportive connection between a healthcare provider and a patient, crucial for effective treatment and care.

Outcomes

The results or effects produced by a particular process, treatment, or intervention.