The recovery of an additional investment in working capital is likely to:
A) occur at the end of a project's life.
B) occur at the beginning of a project's life.
C) occur whenever the project first shows a profit.
D) be a sunk cost.

Question

Quizplus · Accepted Answer

Working capital is the amount of cash needed to finance a company's short-term operations. It is typically required at the beginning of a project and is recovered at the end of the project's life. Therefore, the recovery of an additional investment in working capital is likely to occur at the end of a project's life.

The Recovery of an Additional Investment in Working Capital Is