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

Question

Quizplus · Accepted Answer

A reduction in accounts payable will impact the net working capital requirements for the project, as it will decrease the amount of funds needed to finance short-term liabilities.

A New Project Is Expected to Have the Following Effects