Question: 1)What do we mean by 'working capital requirement'. What does it represent ? Is it important to take working capital into consideration when thinking about

1)What do we mean by 'working capital requirement'. What does it represent ? Is it important to take working capital into consideration when thinking about an investment project ? If so, why ?

2)What are the elements which make up the working capital of a company ?Give a short comment on each of the elements making up the working capital

3) Why do we need to calculate the net present value of a project by discounting future cashflows when considering an investment ? Can you explain why the free cashflow is the critical measure for the parties that finance a project, whether they finance in debt or in equity ?

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