Capital set aside to ensure the smooth running of the project at the time of investment that is subsequently recovered at the end of the projects life is known as:

Question

Quizplus · Accepted Answer

The capital set aside to ensure the smooth running of the project at the time of investment is known as working capital. This capital is expected to be recovered at the end of the project's life and is not considered a sunk cost, leaving options A and C out. It is also not a side effect of the project, making option B incorrect. Therefore, the best choice is D - Working capital.

Capital Set Aside to Ensure the Smooth Running of the Project