Net working capital and concerning net present value

Assignment Help Financial Management

Reference no: EM132007765

1. Net working capital:

A. is the only expenditure where at least a partial recovery can be made at the end of a project.

B. is frequently affected by the additional sales generated by a new project.

C. can be ignored in project analysis because any expenditure is normally recouped by the end of the project.

D. requirements generally, but not always, create a cash inflow at the beginning of a project.

E. expenditures commonly occur at the end of a project.

2. Which one of the following statements concerning net present value (NPV) is correct?

A. An investment should be accepted only if the NPV is positive and rejected if it is negative.

B. An investment should be accepted only if the NPV is equal to the initial cash flow.

C. An investment should be accepted if, and only if, the NPV is exactly equal to zero.

D. An investment with greater cash inflows than outflows, regardless of when the cash flows occur, will always have a positive NPV and therefore should always be accepted.

E. Any project that has positive cash flows for every time period after the initial investment should be accepted.

Reference no: EM132007765

Questions Cloud

How changes will impact public health policy and practice : You write a 2 page paper analyzing the influence that specific historical events have had in the evolution of disease surveillance systems.

Firm tax-deductible depreciation expense is called : The cash flow tax savings generated as a result of a firm's tax-deductible depreciation expense is called the:

Make frequency table with seven classes showing class limits : STATISTICS ASSIGNMENT. EMPIRE STATE COLLEGE. Make a frequency table with seven classes showing class limits, class boundaries, midpoints, frequencies

What is the christian response to poverty : What is the Christian response to poverty? What could a christian do besides give monetary donations?

Net working capital and concerning net present value : Net working capital. Which one of the following statements concerning net present value (NPV) is correct?

What is meant by diminishing returns of an input : a) What is meant by diminishing returns of an input? b) Does it always occur in the short run? Discuss

What interventions can be used to improve the problem : Conduct in-depth analysis of a pertinent topic related to aging. Define the problem, specific population affected, cultural implications.

How much money will you need at retirement : You plan to live 20 years in retirement, expect inflation to be 3% and investments to return 5%. How much money will you need at retirement?

Why are investors risk-averse : Why are investors risk-averse? How can investors deal with different degrees of risk?

User Account

All Pages