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If a company would need to increase net working capital to start a potential new project how should it be treated in the project's cash
If a company would need to increase net working capital to start a potential new project how should it be treated in the project's cash flow analysis?
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The increase in net working capital should be an inflow as part of the project's initial cash flow.
The increase in net working capital should be an outflow as part of the project's initial cash flow
The increase in net working capital times one minus the company's tax rate should be an inflow as part of the project's initial cash flow.
The increase in net working capital times one minus the company's tax rate should be an outflow as part of the project's initial cash flow.
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