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

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.

Zybrea Knight · Accepted Answer

Final Answer : D, Explanation :  Net working capital is often affected by the additional sales generated by a new project, as these sales can increase the need for inventory and receivables, thereby affecting the net working capital.

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