Which of the following is the correct mathematical expression for a project’s cash flow? Multiple choice question. Project cash flow = Project operating cash flow − Project additions to net working capital − Project capital spending Project cash flow = Project operating cash flow + Project additions to net working capital − Project capital spending Project cash flow = Project operating cash flow + Project additions to net working capital + Project capital spending Project cash flow = Project operating cash flow − Project additions to net working capital + Project capital spending

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 5QTD
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Which of the following is the correct mathematical expression for a project’s cash flow?

Multiple choice question.

Project cash flow = Project operating cash flow − Project additions to net working capital − Project capital spending

Project cash flow = Project operating cash flow + Project additions to net working capital − Project capital spending

Project cash flow = Project operating cash flow + Project additions to net working capital + Project capital spending

Project cash flow = Project operating cash flow − Project additions to net working capital + Project capital spending

 

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