A six-year project for Little Egypt, Inc results in additional accounts receivable of $150,000,
additional inventory of $50,000, and additional accounts payable of $80,000 today.
What is the
change in the NPV of a project solely due to the additional net working capital (NWC) needs?
Assume a 14% discount rate, and the recovery of net working capital at the end of the project.
A) a decrease of $58,689 B) a decrease of $42,670
C) a decrease of $120,000 D) a decrease of $34,606
B
You might also like to view...
Special order decisions involve:
A. buying goods from other companies rather than making them internally. B. an offer from a customer to buy goods at a lower-than-normal selling price. C. an offer to sell goods at a price that is higher than normal. D. None of the above.
________ is a sampling procedure in which each element of the population has a fixed probabilistic chance of being selected for the sample
A) Nonprobability sampling B) Probability sampling C) Convenience sampling D) Judgmental sampling
Under the Equal Pay Act of 1963 an employee may not be paid at a lesser rate than employees of the opposite sex for tasks requiring equal skill, effort, and responsibility under similar working conditions
a. True b. False Indicate whether the statement is true or false
A common myth about entrepreneurship is that "Any entrepreneur with a good idea can ________ to fund his/her business."
A. use a skunkworks B. go public C. use formal control systems D. start a franchise E. raise venture capital