1. Which of the following is a situation where a new project will require a cash investment in net working capital?

A) Inventory levels will be reduced when the project is introduced

B) All sales related to the project will be cash sales to a subsidiary

C) The project will increase inventory more than accounts payable

D) The project will require additional inventory which will be financed by a supplier

2. An individual investor's required expected rate of return would be lowest for a corporation's

preferred stock

corporate bonds

common stock