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Which of the following best explains how working capital is handled in the cash flow statement? Working capital is computed like a salvage value that
Which of the following best explains how working capital is handled in the cash flow statement? Working capital is computed like a salvage value that must be considered for gains taxes, but in each year of the project. Working capital is ignored because it is just an accounting expense like depreciation that doesn't actually affect cash flow. Working capital, since it is fully recovered at the end of the project, can be completely ignored. Working capital shows up as negative cash flow in year 0 and as an identical positive cash flow at the end of the project
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