Question

Net working capital:

a. is the only expenditure where at least a partial recovery can be made at the end of a project.
b. can be ignored in project analysis because any expenditure is normally recouped by the end of the project.
c. requirements generally, but not always, create a cash inflow at the beginning of a project.
d. is frequently affected by the additional sales generated by a new project.
e. expenditures commonly occur at the end of a project.

Answer 1

D) is frequently affected by the additional sales generated by a new project.

Step-by-step explanation:

Working is amount of amount of money required to finance the daily operation of a business. These represent the excess of current assets over current liabilities.

They are usually affected by the level of sales . The higher the amount of sales the higher the working capital required to sustain the operation. For a project appraisal, incremental working capital is to be considered and would be recouped at the end of the project period.