In evaluating the initial investment for a capital budgeting ...

[BrownTown3]

In evaluating the initial investment for a capital budgeting project, ________.
 
  A) an increase in net working capital is considered a cash inflow
  B) a decrease in net working capital is considered a cash outflow
  C) an increase in net working capital is considered a cash outflow
  D) net working capital does not have to be considered

Question 2

Which of the following is true of risk?
 
  A) Risk and return are inversely proportionate to each other.
  B) Higher the risk associated with a security the lower is its return.
  C) Risk is a measure of the uncertainty surrounding the return that an investment will earn.
  D) Riskier investments tend to have lower returns as compared to T-bills which are risk free.

[mk6555]

Answer to Question 1

C

Answer to Question 2

C

[BrownTown3]

YES! Correct, THANKS for helping me on my review

[marict]

Thanks for the timely response, appreciate it