One example of a terminal cash flow is the recapture of the net working capital associated with the project.

Question

Quizplus · Accepted Answer

Terminal cash flows refer to the cash flows associated with a project's final year of operation or the year in which the project is terminated. One of the common examples of a terminal cash flow is the recapture of the net working capital, which represents the amount of working capital that is tied up in the project and can be recovered at the end of its life. Therefore, the statement is true.

One Example of a Terminal Cash Flow Is the Recapture