A decrease in net working capital (NWC) is treated as a
A) cash inflow.
B) cash outflow.
C) sunk cost.
D) historical cost.

Name: A decrease in net working capital (NWC) is treated as a A) cash inflow. B) cash outflow. C) sunk cost. D) historical cost.
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Question

Quizplus · Accepted Answer

A decrease in net working capital (NWC) is considered a cash inflow because it implies that current liabilities are increasing more than current assets, or current assets are decreasing, which frees up cash for the company.

A Decrease in Net Working Capital (NWC) Is Treated as a