A new project is expected to have the following effects on the ﬁnancial statements of a ﬁrm. The
effect of an increase in inventory should be included in the net working capital requirements for the
project.

Question

Quizplus · Accepted Answer

An increase in inventory would require an increase in net working capital, and as such, it should be included in the calculation of the net working capital requirements for the project.

A New Project Is Expected to Have the Following Effects