The total accumulated net working capital of a project is normally recovered in the project's ____ year.
A) last
B) first
C) second
D) second to last

Question

Quizplus · Accepted Answer

Net working capital is the difference between a company's current assets and its current liabilities. It is needed to finance a project's day to day operations. Typically, the net working capital invested in a project is recovered gradually over the life of the project. However, it is normally fully recovered in the project's last year, once the project is completed and all operations have ceased. Therefore, the correct answer is A) last.

The Total Accumulated Net Working Capital of a Project Is