How Is Working Capital Needed in the Operations of Investments

question 59

Multiple Choice

How is working capital needed in the operations of investments treated in discounted cash flow analysis?

• A)added to cost of the investment
• B)added to cash inflows when recovery occurs
• C)both a and b
• D)none of the above

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Definitions:

Take-Home Pay

The amount of income that an individual actually receives after deductions, such as taxes and social security, have been subtracted from their gross salary.

SUTA Tax

A state-level tax that employers pay to fund their state's unemployment benefits programs, with rates and wage bases that can vary by state.

FUTA Tax

A federal tax in the United States paid by employers to fund unemployment benefits.

Employer's Payroll Taxes

Taxes that employers are required to pay on behalf of their employees, including Social Security, Medicare, and unemployment taxes.