Question: A project has a 3 - year life and annual sales projections of $ 1 2 0 , 0 0 0 , $ 1 6

A project has a 3-year life and annual sales projections of $120,000, $160,000 and $190,000 for years 1 to 3, respectively. The project requires net working capital (NWC) equal to 5 percent of the next year's sales. How is this requirement handled in project analysis?

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