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Which of the Following Is True About Initial Working-Capital Investment

Question 76

Multiple Choice

Which of the following is true about initial working-capital investment?


A) Initial investments in plant and equipment are usually accompanied by additional investments in working capital.
B) Initial investments in plant and equipment are never accompanied by additional investments in working capital.
C) Additional investments in working-capital investments are never in the form of a current asset.
D) Investments in initial machines occur at the end of the product's life.
E) Initial investments exclude cash assets.

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