A Project's Operating Cash Flow Will Increase When

question 48

Multiple Choice

A project's operating cash flow will increase when:

• A) the depreciation expense increases.
• B) the sales projections are lowered.
• C) the interest expense is lowered.
• D) the net working capital requirement increases.
• E) the earnings before interest and taxes decreases.

---

Definitions:

Compounded Monthly

Involves the addition of earned interest back to the total principal amount at the end of each month, effectively earning interest on interest.

4 Years Ago

A term referring to a point in time that is four years prior to the current date.

Annually

Pertaining to something that occurs once every year.

4.2%

Often represents a percentage rate, such as an interest rate or growth rate, quantifying an increase or yield on an investment or financial product.