--%>

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 : Causes and solution to international

    causes and solutions to international bank crisis

  • Q : Chartered banks Normal 0 false false

    Normal 0 false false

  • Q : Revision Order #2 Hello, You folks

    Hello, You folks recently completed an order for me. I'm very impressed and much thanks in advance. I'd like to submit more problems (8 attached) if you can have the same expert work on these please? Some of the #'s were slightly modified from my previous order, so should be easier than starting

  • Q : Which ratios would long-term bond

    Which ratios would a potential long-term bond investor is most interested in? Describe. Current & potential lenders of long-term funds, such like banks & bondholders, are interested in debt ratios. While a business's debt ratios rise sig

  • Q : How do mergers influence communities

    How do mergers influence communities?While a locally controlled bank is merged into a bank headquartered elsewhere (an out-of-market merger), some of the apprehension regarding the institution's future commitment to the local community is bound

  • Q : What is an Element Element : It is a

    Element: It is a subdivision of a budgetary program and the second stage of the program structure in the Uniform Codes Manual.

  • Q : Define Overhead Unit Overhead Unit :

    Overhead Unit: The organizational unit which benefits the production of an article or a service however that can’t be directly related with an article or service to share out all of its expenditures to elements and/or work authorizations. The co

  • Q : The official unemployment rate Normal 0

    Normal 0 false false

  • Q : Describe factors cause change in

    Normal 0 false false

  • Q : Why banks make short-term or

    Banks desire to make short-term, self-liquidating loans to businesses. Why? Banks desire to be able to illustrate where the funds are likely to come from such that the borrower is capable to employ to make the req