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Which of the Following Statements Regarding Investment in Working Capital

Question 29

Multiple Choice

Which of the following statements regarding investment in working capital is incorrect?


A) An investment in working capital, unlike an investment in plant and equipment, represents a positive cash flow when the investment is made.
B) Net working capital cash flow is measured by the change in working capital, not the level of working capital.
C) Net working capital may change during the life of a project.
D) Working capital is generally recovered at the end of a project.

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