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 project's fixed assets at a price at least equal to the book value of the assets

Question

Quizplus · Accepted Answer

Recapturing 100% of its net working capital investment in a project does not necessarily involve selling the project's fixed assets at a price at least equal to their book value. Net working capital typically refers to current assets minus current liabilities, and recapturing this amount is independent of the sale price of fixed assets.

If a Firm Wishes to Recapture 100% of Its Net