7. Analysts should consider net working capital (NWC) in project cash flows because Multiple Choice...

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Finance

7. Analysts should consider net working capital (NWC) in project cash flows because

Multiple Choice

  • typically firms must invest cash in short-term assets to produce finished goods.

  • firms need positive NPV projects for investment.

  • NWC represents sunk costs.

  • inclusion of NWC typically increases calculated NPV.

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