The recapture of net working capital at the end of a project will have no effect

Question

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

have no effect on the terminal year free cash flow because the net working capital change has already been included in a prior year.

increase terminal year free cash flow.

increase terminal year free cash flow by the change in net working capital times the corporate tax rate.

decrease terminal year free cash flow by the change in net working capital times the corporate tax rate.

have no effect on the terminal year free cash flow because the net working capital change has already been included in a prior year.

increase terminal year free cash flow.

increase terminal year free cash flow by the change in net working capital times the corporate tax rate.

decrease terminal year free cash flow by the change in net working capital times the corporate tax rate.

Explanation / Answer

correct option is "B" -Increase terminal year free cash flow .

As working capital is realized at the end og project.

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