Asked by Nicholas Bermudez on Jun 01, 2024
Verified
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.
Net Working Capital
The difference between a company's current assets and its current liabilities, indicating the company's ability to meet its short-term obligations.
Cash Inflow
Money received by a business from various sources, including sales, investment income, and financing, contributing to its cash pool.
Project Analysis
The process of evaluating the viability, stability, and profitability of a project or endeavor before committing resources to it.
- Apprehend the relevance of fluctuations in net working capital during project assessment and its influence on cash movements.
Verified Answer
Learning Objectives
- Apprehend the relevance of fluctuations in net working capital during project assessment and its influence on cash movements.
Related questions
Which of the Following Is True Regarding Project Evaluation ...
A New Project Will Cause Accounts Payable to Increase by ...
Holding All Other Variables Constant, Which of the Following Would ...
Kay's Nautique Is Considering a Project Which Will Require Additional ...
The Correct Formula of Project Cash Flow Is Sales - ...