Given the following information on a project: initial capital cost = $500,000; installation costs associated with the capital asset = $25,000; R&D costs associated with the project = $50,000; associated opportunity costs = $80,000; increase in raw materials inventory = $10,000,which of these amounts is included with working capital?

Question

Quizplus · Accepted Answer

The increase in raw materials inventory is included in working capital, as it is a current asset that will be used in the production process. The other costs listed are not directly related to working capital.

Given the Following Information on a Project: Initial Capital Cost