Many Capital Projects Require Increases in Net Working Capital

question 116

Multiple Choice

Many capital projects require increases in net working capital. Which of the following would be included in the net working capital requirements of a capital project?

• A)Machinery and equipment
• B)Accounts receivable and accounts payable
• C)Long term debt
• D)Fixed assets net of depreciation
• E)All of the above would be included in net working capital requirements.

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Definitions:

Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price level in a given period.

Network Design Decisions

Strategic choices made regarding the layout and functioning of a supply chain network, including locations of facilities and distribution routes.

Supply Chain Configuration

The arrangement and integration of the supply chain's various components, including suppliers, production facilities, distribution centers, and customers, to maximize efficiency and effectiveness.

Responsiveness

The ability of a company or system to quickly react to changes in demand, technology, or market conditions.