Net Working Capital

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 an initial cash inflow or outflow.
E) is the only expenditure where at least a partial recovery can be made at the end of a project.