Changes in the net working capital a can affect the

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21. Changes in the net working capital: A. can affect the cash flows of a project every year of the project's life. B. only affect the initial cash flows of a project. C. are included in project analysis only if they represent cash outflows. D. are generally excluded from project analysis due to their irrelevance to the total project. E. affect the initial and the final cash flows of a project but not the cash flows of the middle years. Difficulty level: Medium Topic: NET WORKING CAPITAL Type: CONCEPTS 22. Which one of the following will decrease net working capital of a firm? Difficulty level: Easy Topic: NET WORKING CAPITAL Type: CONCEPTS
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Chapter 06 - Making Capital Investment Decisions 6-9 23. Net working capital: Difficulty level: Easy Topic: NET WORKING CAPITAL Type: CONCEPTS 24. A company which uses the MACRS system of depreciation: Difficulty level: Easy Topic: MACRS Type: CONCEPTS
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Chapter 06 - Making Capital Investment Decisions 6-10 25. Bet‘r Bilt Toys just purchased some MACRS 5 -year property at a cost of $230,000. Which of the following will correctly give you the book value of this equipment at the end of year 2? I. 52% of the asset cost II. 48% of the asset cost III. 68% of 80% of the asset cost IV. the asset cost, minus 20% of the asset cost, minus 32% of 80% of the asset cost A. II only B. III and IV only C. I and III only D. II and IV only E. I, II, III, and IV Difficulty level: Easy Topic: MACRS Type: CONCEPTS
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Chapter 06 - Making Capital Investment Decisions 6-11
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