Author Question: In evaluating the initial investment for a capital budgeting project, ________. A) an increase in ... (Read 63 times)

BrownTown3 · **on:** Jul 11, 2018

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.