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

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 17MCQ
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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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