Question
For a project with a life of four years, if the amount of Net Working Capital (NWC) needed is originally $4,500, and then in year
For a project with a life of four years, if the amount of Net Working Capital (NWC) needed is originally $4,500, and then in year one the project needs $4,000, and then $5,600 in year two until the project is over, what would the changes to NWC be for capital budgeting purpose?
Question 22 options:
| A) Year 0: - $4,500; Year 1: - $500; Year 2: $0; Year 3: -$1,600; Year 4: $5,600 |
| B) Year 0: - $4,500; Year 1: $500; Year 2: -$1,600; Year 3: $0; Year 4: $5,600 |
| C) Year 0: - $4,500; Year 1: - $150; Year 2: $0; Year 3: $2,650; Year 4: $4,500 |
| D) Year 0: $4,500; Year 1: - $150; Year 2: $0; Year 3: -$2,650; Year 4: $2,000 |
| E) Year 0: - $4,500; Year 1: $0; Year 2: $0; Year 3: $0; Year 4: $5,000 |
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