Question: Question 67 ptsAnswer the question in bold. It seems like we talked about 1968532 things in class regarding net working capital (NWC). We talked about
Question 67 ptsAnswer the question in bold. It seems like we talked about 1968532 things in class regarding net working capital (NWC). We talked about things like: What is NWC? What components are included, and why? Why would we even be concerned about this in finance? When we calculate a project's free cash flows, how should we build in net working capital? We should ignore net working capital because it is not an actual cash outflow. We should lignore net working capital because it in generally fully "recoverable" at the end of a project. We should subtract the ferm's total NWWC. because the represents the amount of money "bed up" in operating projects after the new project is selected. We should subtract the change in NWC, as this represents canh that is newly tied up or "Invested" to support operating the project. We should subtract the change in NWC, because this moresents that cash payments made to purchase ineentory for the project.
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