If a firm wishes to recapture 100% of its net working capital investment in a project, the firm will have to pay all of the project's suppliers in full.

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If a firm wishes to recapture 100% of its net working capital investment in a project, it will have to pay all of the project's suppliers in full. This is because net working capital is the difference between a firm's current assets and current liabilities. When a firm invests in a project, it typically increases its current assets (e.g., inventory, accounts receivable) and current liabilities (e.g., accounts payable). If the firm wishes to recapture 100% of its net working capital investment, it will need to collect all of its accounts receivable and pay off all of its accounts payable.

If a Firm Wishes to Recapture 100% of Its Net