Question

Net working capital: Group of answer choices requirements, A.such as an increase in accounts receivable, create a cash inflow at the beginning of a project. B.can be ignored in project analysis because any expenditure is normally recouped at the end of the project. C.can create either an initial cash inflow or outflow. D. is the only expenditure where at least a partial recovery can be made at the end of a project. E.is rarely affected when a new product is introduced.

Answer 1

The correct answer is letter D

Net working capital is the aggregate value of all current assets and current liabilities. It is used to measure a company's short-term liquidity and can also be used to get an overall impression of the company's management's ability to use assets efficiently.