McqMate
| Q. |
Which of the following statements is most correct? |
| A. | investment in working capital must be depreciated over the project life according to a straight-line method. |
| B. | if a project incurs an operating loss (a negative taxable income) during a typical tax year, the firm pays no income taxes during that year. |
| C. | whenever a project requires an investment in working capital, the profitability of the project will be affected negatively. |
| D. | all of the above |
| Answer» C. whenever a project requires an investment in working capital, the profitability of the project will be affected negatively. | |
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