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Your company's boss asked you to estimate the cash flows relevant to a new investment opportunity. In particular, he wants you to focus on Net
Your company's boss asked you to estimate the cash flows relevant to a new investment opportunity. In particular, he wants you to focus on Net Working Capital and how it may need to be adjusted for each year of the proposed investment project.
Here's the summary of your estimates: If accepted, the year project would require an immediate investment of $ into the Net Working Capital NWC It would be necessary to increase the Net Working Capital by $ in each subsequent year of the project.
You then summarized the results for your boss as follows: Fill it out! Pay attention to the signs! A sign indicates a cash outflow for the company, while no sign indicates a cash inflow.
tableChange in NWCYear vdots
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