Net working capital:
A)can be ignored in project analysis because any expenditure is normally recouped by the end of the project.
B)requirements generally,but not always,create a cash inflow at the beginning of a project.
C)expenditures commonly occur at the end of a project.
D)is frequently affected by the additional sales generated by a new project.
E)is the only expenditure where at least a partial recovery can be made at the end of a project.

Question

Quizplus · Accepted Answer

Net working capital is often impacted by the increase in sales that a new project generates, requiring additional resources to manage inventory, receivables, and payables associated with the higher level of business activity.

Net Working Capital