Which one of the following is a project cash inflow? Ignore any tax effects.

Changes in the net working capital requirements:    A.  can affect the cash flows of a project every year of the project's life. B.  only affect the initial cash flows of a project. C.  only affect the cash flow at time zero and the final year of a project. D.  are generally excluded from project analysis due to their irrelevance to the total project. E.  reflect only the changes in the current asset accounts. Refer to section 10.4

22.	Which one of the following is a project cash inflow? Ignore any tax effects.    A.  decrease in accounts payable B.  increase in inventory C.  decrease in accounts receivable D.  depreciation expense based on MACRS E.  equipment acquisition Refer to section 10.4

23.

Net working capital:    A.  can be ignored in project analysis because any expenditure is normally recouped at the end of the project. B.  requirements, such as an increase in accounts receivable, create a cash inflow at the beginning of a project. C.  is rarely affected when a new product is introduced. D.  can create either a cash inflow or a cash outflow at time zero of a project. E.  is the only expenditure where at least a partial recovery can be made at the end of a project. Refer to section 10.4

24.

The operating cash flow of a cost cutting project:    A.  is equal to the depreciation tax shield. B.  is equal to zero because there is no incremental sales. C.  can only be analyzed by projecting the sales and costs for a firm's entire operations. D.  includes any changes that occur in the current accounts. E.  can be positive even though there are no sales. Refer to section 10.6