An increase in net working capital required at the beginning of an expansion project must be considered to be
A) a cash inflow.
B) a reallocation of assets.
C) a cash outflow.
D) None of the above
C
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A country's balance of payments accounts records its
A) international exports and imports and nothing else. B) international trading, borrowing, and lending. C) tax receipts and expenditures. D) tariffs and nontariff revenue and government purchases. E) tariff receipts and what it pays in tariffs to other nations.
Which of the following statements is TRUE?
A) If private saving is greater than private investment, then the private sector has a surplus. B) If private investment is greater than private saving, then the private sector has a deficit. C) If private investment is greater than private saving, then either the government or net export sector must have a surplus. D) All of the above answers are correct.