The change in net working capital that results from the acceptance of a project is an incremental cash flow that must be considered in capital budgeting analysis.

Question

Quizplus · Accepted Answer

The change in net working capital is an important factor in capital budgeting analysis as it represents the difference between current assets and current liabilities when a project is accepted. This incremental cash flow should be considered when analyzing the potential profitability of a project.

The Change in Net Working Capital That Results from the Acceptance