When evaluating a project's cash flows, what is the proper way to handle working capital requirements?

• A. Working capital is an operational need and irrelevant to cash flow estimating.
• B. Working capital requirements are a negative cash flow in the year the project starts. When the project is terminated, the reduction in working capital is added back to the project cash flows.
• C. Working capital is too difficult to compute and therefore often excluded from cash flow calculations.
• D. Working capital needs are added to the project cash flows every year of the project's life .