Changes in Net Operating Working Capital Should Not Be Reflected

question 40

True/False

Changes in net operating working capital should not be reflected in a capital budgeting cash flow analysis because capital budgeting relates to fixed assets,not working capital.

---

Definitions:

Competitive Edge

An advantage that allows an organization to outperform its rivals.

Talented Employees

Individuals who possess a high level of skill, creativity, or intelligence, making them particularly valuable to their employers.

Old Age

The latter part of life, typically regarded as the years after retirement, when a person is considered to be advanced in years or elderly.

Survivors

Refers to the employees who remain in an organization following layoffs or downsizing, often facing increased workloads and psychological stress.