Investment decision

Financial Management

As it is given that working capital of 40 lakh will be required at end of 8th year. Why they have added 40L in initial cash outflow

Gauri Shete

CA Final

★ 5K+

16-Mar-23 11:53

496

Answers (3)

Best Answer

Hi, note the sentence " working capital of 40L is needed and it will be released at the end of 8th year" Working capital is required for company's operation of business.

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Pravin Nesaraj

CA Inter

★ 32K+

16-Mar-23 12:18

Working capital always has 2 effects: (1) Add it in INITIAL CASH OUTFLOW in Year 0. (2) Consider it as TERMINAL CASH INFLOW in the last year.

Varshaa M

CA Final

★ 35K+

16-Mar-23 13:35

Thanks both of u

Thread Starter

Gauri Shete

CA Final

★ 5K+

16-Mar-23 14:04