--%>
Assignment Help - homework help

Influence of working capital in the incremental cash flow

How and why does working capital influence the incremental cash flow estimation for a proposed large capital budgeting project? Describe.
Several large projects need additional working capital. This investment in additional working capital becomes portion of the initial investment. This investment is recovered at the ending of the project's life. There may be some spontaneous raise in current liabilities related with a project, however the change in net working capital, if any, is likely to be a positive value requiring an raise in the initial investment of that amount.

   Related Questions in Finance Basics

  • Q : Question on level of free market wage

    In the year of 1996, the U.S. Congress raised the minimum wage from $4.25 per hour to $5.15 per hour. Some of the people suggested that a government subsidy could help employers finance the higher wage. Assume the supply of low-skilled labour is specified by

    		•
  • Q : Problem on tax and spend at possible

    Normal 0 false false

  • Q : For banking services how competitive is

    For banking services how competitive is the market?Along with more than 7,000 banks and thrifts in the U.S., banking is one of the most competitive industries in the world. Assume the following characteristics of the American financial services

    		•
  • Q : Define Fund Balance Fund Balance : For

    Fund Balance: For accounting aims, the excess of a fund’s assets over its liabilities. And for budgeting aims, the surplus of a fund’s resources over its expenses.

    		•
  • Q : Determine per unit cost of production

    Normal 0 false false

  • Q : Bg explain factors that responsible for

    explain factors that responsible for the recent surge in international market

    		•
  • Q : What is Workload Budget Adjustment

    Workload Budget Adjustment: Any adjustment to the presently authorized budget obligatory to maintain the level of service needed to fund a Workload Budget, as stated in the Government Code Section 13308.05. A workload budget adjustment is as well term

    		•
  • Q : Summer Co. is expected to pay a

    Summer Co. is expected to pay a dividend or $4.00 per share out of earnings of $7.50 per share. If the required rate of return on the stock is 15% and dividends are growing at a current rate of 10% per year, calculate the present value of the growth opportunity for the stock (PVGO)

    		•
  • Q : Describe significance of excess reserves

    Normal 0 false false

  • Q : How are financial trades made on a

    How are financial trades made on a planned exchange?Each of exchange listed security is traded at a particulate location on the trading floor called the post. The trading is supervised through specialists who act either as brokers (bringing toge

    		•