Question
How could an increase in CAPEX lead to a decrease in working capital (this particular working capital phenomenon would be a positive influence on FCF)?
How could an increase in CAPEX lead to a decrease in working capital (this particular working capital phenomenon would be a positive influence on FCF)? Be sure to pick the best answers...several might be reasonably correct.
A. A new set of complex manufacturing devices might lower the need to tie up money in intermediate goods (work-in-progress).
B. More CAPEX might mean people would stay later at the office.
C. More CAPEX might lead to higher AR, because the product emanating from the CAPEX expansion might be more attractive to buyers.
D. More CAPEX might lead to SEC oversight.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started