Additional cash needed to fill increased working capital requirements should be included in the initial cost of a product when analysing an investment.

Question

Quizplus · Accepted Answer

Increased working capital requirements represent an additional cost that needs to be considered when assessing the feasibility of an investment. By including the additional cash needed to support the increased working capital requirements in the initial cost of the project, the analysis can provide a more accurate picture of the investment's profitability and sustainability over time.

Additional Cash Needed to Fill Increased Working Capital Requirements Should