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For a capital budgeting analysis a company requires an increase of $40,000 of working capital in Year 0. The analysis assumes the $40,000 of working

For a capital budgeting analysis a company requires an increase of $40,000 of working capital in Year 0. The analysis assumes the $40,000 of working capital is returned at the end of the project. If the net change in working capital is always zero, can working capital be ignored in the analysis? Explain.

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