If a firm wishes to recapture 100% of its net working capital investment in a project, the firm will have to collect all of the accounts receivables related to the project.

Question

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Net working capital investment typically includes accounts receivable among other current assets minus current liabilities. To recapture 100% of its net working capital, a firm must collect all accounts receivables related to the project, as these are part of the current assets directly tied to the project's operations.

If a Firm Wishes to Recapture 100% of Its Net