Increases in Working Capital Needs Should Be Included as Part

question 116

True/False

Increases in working capital needs should be included as part of the initial outlay of a project,but decreases in working capital for a project should not be considered because they are not guaranteed.

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Definitions:

Investment

Placing capital into assets or projects with the aim of generating growth, returns, or appreciation over time.

Shares

Units of ownership interest in a corporation or financial asset, representing a proportion of the company's capital.

Factory

A building or set of buildings where products are manufactured or assembled primarily by machine.

Disposable Income

The total amount of money available for an individual or household to spend or save after income taxes have been deducted.