Question

what affect purchase of plant will have on working capital?
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Answer 1

Answer:

Explanation:

Increase in Working Capital

Decrease in Working Capital

Answer 2

Answer:

no effect.

Explanation:

working capital is used to fulfill the day to day transaction in such as payment of wages, carriage ,electric bill , etc.

But, here purchase of plant is for long term, means it comes under fixed capital or capital budgeting।