In project analysis,which one of these is a common assumption regarding net working capital?

Question

Quizplus · Accepted Answer

It is a common assumption in project analysis that net working capital will be returned to its preproject level at the end of a project. This means that any increase in working capital required during the project will eventually be recovered once the project is completed. It is not common to include aftertax salvage value or treat increases in net working capital as a cash inflow. Only changes in current assets are typically included in net working capital for project analysis purposes. Additionally, changes in net working capital can occur at any point during a project, not just when it commences.

In Project Analysis,which One of These Is a Common Assumption