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PLEASE ANSWER BOTH 13 AND 14 If most of the change in net working capital is not an actual cash outflow, why do we subtract
PLEASE ANSWER BOTH 13 AND 14
If most of the change in net working capital is not an actual cash outflow, why do we subtract it when calculating a project's free cash flows? Because it represents cash tied up in the operation of the project, meaning the cash is not available to sp or pay to investors Because we might not be able to collect all of our accounts receivable, making it similar to a cash outflow Because it is an adjustment on the firm's statement of cash flows Because the purchase of inventory is an actual cash outflow Question 14 There are three characteristics that we need to know about a project's cash flows in order to properly value them (correctly calculate the present value). Name the three things, and briefly explain why we need to know each characteristic
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