Final answer:
For a project to generate a positive net working capital cash flow at its conclusion, it must typically have generated cumulative positive cash flows during its operation, indicating a healthy financial position.
Step-by-step explanation:
To determine whether a project will generate a positive net working capital cash flow at the end of its useful life, we have to consider the cumulative cash flow throughout the project's life. A project with a cumulative positive cash flow during its operation implies that it has been able to cover its working capital needs and has generated excess funds that can lead to a positive net working capital cash flow upon conclusion.
Firms aim to grow by reinvesting profits back into their businesses, finding the most efficient ways to finance their capital requirements either through early-stage investors, reinvestment of earnings, borrowing from financial institutions, or raising equity. The positive cash flow from these activities is indicative of a healthy financial position, which may lead to increased asset value at the end of the project's life resulting in positive net working capital cash flow.
In summary, for a project to generate positive net working capital cash flow at the end of its useful life, it would most likely need to have generated cumulative positive cash flows during its operation rather than cumulative negative cash flows. Hence, the correct answer to the given multiple-choice question would be B) the project must have generated a cumulative positive cash flow during the life of the project.