If a firm wishes to recapture 100% of its net working capital investment in a project, the firm will have to sell all of the inventory related to the project at a price at least equal to the cost.

Question

Quizplus · Accepted Answer

To recapture 100% of its net working capital investment, a firm must recover all costs associated with the project, including the full cost of inventory. Selling the inventory at cost ensures no loss on the inventory portion of the working capital.

If a Firm Wishes to Recapture 100% of Its Net