Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to ______________ percent in case of seasonal products manufacturing plant?
Correct answer: B. 50
- A. 30
- B. 50
- C. 75
- D. 95
Explanation
Seasonal plants need extra funds to cover inventory and operating expenses during the production or selling cycle. Their working capital requirement may rise to about 50% of total capital investment.
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