The change in net working capital associated with new projects is always positive, because new projects mean that more working capital will be required.This situation is especially true for replacement projects.

Question

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The change in net working capital associated with new projects can be positive or negative, depending on whether the project increases or decreases current assets more than current liabilities. It's not always true that new projects require more working capital, especially in the case of efficiency-improving replacement projects that might reduce the need for working capital.

The Change in Net Working Capital Associated with New Projects