The recapture of net working capital at the end of a project will
A) increase terminal year free cash flow.
B) decrease terminal year free cash flow by the change in net working capital times the corporate tax rate.
C) increase terminal year free cash flow by the change in net working capital times the corporate tax rate.
D) have no effect on the terminal year free cash flow because the net working capital change has already been included in a prior year.
Correct Answer:
Verified
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