FINC 600 Week 2 Assignment Homework Problems APU | Page 3

Problem 6-13
Each of the following statements is true. ​Explain why they are consistent.
a. When a company introduces a new product, or expands production of an existing product, investment in net working capital is usually an important cash outflow.
b. Forecasting changes in net working capital is not necessary if the timing of all cash inflows and outflows is carefully specified.