Why do we consider changes in net working capital associated with a project to be cash inflows

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Why do we consider changes in net working capital associated with a project to be cash inflows or out-flow rather than consider the absolute level of net working capital?

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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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Question Posted: May 13, 2015 05:56 AM

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Why do we consider changes in net working capital associated with a project to be cash inflows

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Changes in net working capital are generally more important than the absolute level ...View the full answer

Introduction to Corporate Finance

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