24 Some investment projects require that a company increase its working capital. Under the net present value method, the investment and eventual recovery of working capital should be treated as: A. an initial cash outflow. B. a future cash inflow. C. both an initial cash outflow and a future cash inflow. D. irrelevant to the net present value analysis.

24 Some investment projects require that a company increase its working capital. Under the net present value method, the investment and eventual recovery of working capital should be treated as: A. an initial cash outflow. B. a future cash inflow. C. both an initial cash outflow and a future cash inflow. D. irrelevant to the net present value analysis.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 4MC

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Question

24 Some investment projects require that a company increase its working capital. Under the net present value method, the investment and eventual recovery of working capital should be treated as:

	A.	an initial cash outflow.
	B.	a future cash inflow.
	C.	both an initial cash outflow and a future cash inflow.
	D.	irrelevant to the net present value analysis.

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