Quiz Ch 09 – Impact of Working Capital Investments
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
How do investments in working capital affect a project’s NPV?
How do investments in working capital affect a project’s NPV?
How does bonus depreciation affect the depreciation of assets?
Under what circumstances is it suitable to incorporate sunk costs into the assessment of a project?
What is the expected impact on net working capital in a proposed project that necessitates an $8,500 investment in current assets, with 75% of it financed through accounts payable?
How is the need for additional inventory investment often partially counteracted in the context of new projects?
How should the opportunity cost of an asset be treated in capital budgeting?
How does the present value of the depreciation tax shield change with different discount rates?
What is the principal aim of corporate income statements?
Why is the statement “We’ve got too much invested in that project to pull out now” relevant in the context of investment decisions?
Which one is NOT accurate about investing in working capital?