Multiple Choice
What effect is expected at the end of the life of a project that initially required a $20,000 increase in net working capital?
A) The $20,000 must now be paid by the firm.
B) The firm receives a $20,000 cash inflow.
C) Taxable income is reduced by $20,000.
D) No effects are expected from sunk costs.
Correct Answer:
Verified
Correct Answer:
Verified
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