A proposed project will increase a firm\'s accounts receivables. This increase:

Question

A proposed project will increase a firm's accounts receivables. This increase:
Answer

is a source of cash at the start of the project and a use of cash at the end of the project.

is a cash inflow at time zero.

is an initial cash outflow only.

is a sunk cost and should be ignored.

is a cash outflow at time zero and a cash inflow at the end of the project.


I thought "is a cash outflow at time zero and a cash inflow at the end of the project."
is correct.

But I'm not sure this answer. Please give me correct answer.

Explanation / Answer

is a cash outflow at time zero and a cash inflow at the end of the project.

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