The recapture of net working capital at the end of a project will ...

[Mollykgkg]

The recapture of net working capital at the end of a project will
 
  A) decrease terminal year free cash flow by the change in net working capital times the corporate
  tax rate.
  B) increase terminal year free cash flow.
  C) have no effect on the terminal year free cash flow because the net working capital change has
  already been included in a prior year.
  D) increase terminal year free cash flow by the change in net working capital times the corporate
  tax rate.

Question 2

Transaction balances are used to meet the regular cash needs of the firm, not irregular outflows that
  will be handled with speculative balances.
 
  Indicate whether the statement is true or false

[Amiracle]

Answer to Question 1

B

Answer to Question 2

FALSE

[Mollykgkg]

Thank you

[Amiracle]

Happy to help you