Question
A project requires an increase of $10,000 net working capital investment at time 0. What happens to the net working capital when the project is
A project requires an increase of $10,000 net working capital investment at time 0. What happens to the net working capital when the project is terminated?
A) None of the $10,000 will be recovered.
B) It is a sunk cost and therefore is irrelevant when the project is terminated.
C) Half of the $10,000 will be recovered.
D) It will be totally recovered.
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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
