The change in net working capital associated with new projects is always positive, because new projects mean that more working capital will be required.This situation is especially true for replacement projects.

Question

Quizplus · Accepted Answer

The change in net working capital associated with new projects can be positive or negative depending on the working capital needs of the project. While it is true that some new projects may require more working capital, others may require less. Additionally, replacement projects may also result in a positive or negative change in net working capital depending on the differences in working capital needs between the existing and replacement assets.

The Change in Net Working Capital Associated with New Projects