Multiple Choice
Investment in net working capital is not depreciated because:
A) It is not a cash flow
B) It is recovered during or at the end of the project and is not a depreciating asset
C) It is a sunk cost
D) All of the above
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q19: For example, in case of an electric
Q20: When evaluating a projects with positive NPV
Q21: A firm owns a building with a
Q22: Sunk costs are bygones, they are unaffected
Q23: If the depreciation amount is $100,000 and
Q25: For project Z, year-5 inventories increase by
Q27: Working capital is one of the most
Q28: The real rate of interest is 3%
Q29: Given the following data for Project M:
Q41: What are some of the important points