How net operating working capital is recovered


Question 1: Why is it true, in general, that a failure to adjust expected cash flows for expected inflation biases the calculated NPV downward?

Question 2: Explain how net operating working capital is recovered at the end of a project's life, and why it is included in a capital budget analysis.

Question 3: Define (a) simulation analysis, (b) scenario analysis, and (c) sensitivity analysis.

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Finance Basics: How net operating working capital is recovered
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