Question
For a project with a life of four years, if the amount of Net Working Capital (NWC) that is originally needed is $3,500, and then
For a project with a life of four years, if the amount of Net Working Capital (NWC) that is originally needed is $3,500, and then in year two $1,650, and then $2,000 in year three until the end of the project, what would the changes to NWC be?
A) Year 0: -$3,500; Year 1: $0; Year 2: $0; Year 3: $0; Year 4: $3,500 | |
| B) Year 0: -$3,500; Year 1: $1,850; Year 2: -$350; Year 3: $0; Year 4: $0 |
| C) Year 0: -$3,500; Year 1: $0; Year 2: $1,850; Year 3: -$350; Year 4: $2,000 |
| D) Year 0: $3,500; Year 1: $1,850; Year 2: $350; Year 3: $0; Year 4: $0 |
| E) Year 0: -$3,500; Year 1: -$3,500; Year 2: -$5,150; Year 3: -$7,150; Year 4: $7,150 |
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