The purchase of a factory building for a prospective project is an example of an incremental addition to working capital.

Name: The purchase of a factory building for a prospective project is an example of an incremental addition to working capital.
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The purchase of a factory building is a capital expenditure, not an incremental addition to working capital. Working capital refers to the funds a company uses for daily operations, such as inventory, accounts receivable and payable, and cash on hand.

The Purchase of a Factory Building for a Prospective Project