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 net working capital investment only requires selling the current assets of the project, not the fixed assets. The sale of fixed assets will only recapture a portion of the total investment, depending on their book value and the price they can be sold for.

If a ﬁRm Wishes to Recapture 100% of Its Net