Which of the following statements is FALSE?
A)Most projects will require the firm to invest in net working capital.
B)The main components of net working capital are cash,inventory,receivables,and property,plant and equipment.
C)ΔNWCt = NWCt - NWCt - 1.
D)In the final year of a project,the firm ultimately recovers the investment in net working capital.

Question

Quizplus · Accepted Answer

The main components of net working capital are cash, accounts receivable, inventory, and accounts payable. Property, plant, and equipment are not included in the calculation of net working capital.

Which of the Following Statements Is FALSE