Question: Which of the following is flase

A)In the final year of a project, the firm ultimately recovers the investment in net working capital

B) delta NWCt = NWCt - NWCt-1.

C) the main components of net working capital are cash, inventory, receivables, and property, plant and equipment

D) most projects will require the firm to invest in net working capital

Question: Project ABC and project XYZ are dependent (contingent) projects. the projects have the following characteristics: ABC requiers and initial investment of 105000$ and generates free cash flow of 35000 each year for the coming 3 years. XYZ requires an initaial investment of 20000 ad generated 60000 free cash flows each years for the coming 6 years. The discount rate for both projects is 14%. which of the following is true?

A) Accept both projects because they are contingent projects and the total NPV is postiive

B) Cannot be determined because the 2 projects have different investment life

C) Only accept project XYZ because only XYZ has a positive NPV.

D) Only accept tProject ABC because the investment life of project XYZ is too long

E) Reject both projects because the care contingents projects and the total NPV is negative