In Project Analysis,which One of These Is a Common Assumption

question 23

Multiple Choice

In project analysis,which one of these is a common assumption regarding net working capital?

• A)Only changes in current assets are included in net working capital for project analysis purposes.
• B)The aftertax salvage value of an asset that is sold is included as a net working capital item.
• C)Net working capital will be returned to its preproject level at the end of a project.
• D)Increases in net working capital will be treated as a cash inflow.
• E)Any change in net working capital will only occur when a project commences.

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