1. A firm has the opportunity to invest in a start-up solar company, a new cell phone technology, or the latest in television screen. These options are BEST described as _____projects.
A. replacement
B. independent
C. mutually exclusive
D. scaled back
2. Which of the following is NOT an explanation for why an increased investment in a project affect net working capital instead of accounting profits.
A. Credit sales increase accounts receivable, which is an asset
B. increases in inventory are assets.
C. Additional financing affects the profit margin.
D. If a project increase net working capital, the money is a cash flow, not profit