Net Working Capital

question 49

Multiple Choice

Net working capital:

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

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Definitions:

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Financial planning for the costs associated with staff, including salaries, benefits, training, and other employee-related expenses.

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