Net Working Capital Requirement: Year 1: -1,000,000$ Year 2: -1,200,000$ (Change -200,000) Year 3: -1,500,000$ (Change -300,000) Considering that the companies net working requirement is
Net Working Capital Requirement:
Year 1: -1,000,000$
Year 2: -1,200,000$ (Change -200,000)
Year 3: -1,500,000$ (Change -300,000)
Considering that the companies net working requirement is negative from year 1 on...
- do I need to include the requirement in the free cash flow valuation of year 1?
- do I need to include the Working Capital Changes as in inflow in the free cash flow valuation of the years 2/3?
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Authors: Gary A. Porter, Curtis L. Norton
2nd Edition
0030270995, 978-0030270994
