Respuesta :
The early cash flows of a project are the only cash flows that are affected by changes in net working capital requirements; subsequent cash flows are unaffected.
What is working capital meaning?
Simply put, working capital is the money you have available to meet your immediate financial responsibilities. If you want to make money, you must determine your current levels, predict your future needs, and come up with plans to make sure you always have enough money on hand. sure that your working capital serves your demands. The operating liquidity that a business, organisation, or other body, including a government entity, has available to it is measured by a financial indicator called working capital. Along with fixed assets like machinery and equipment, working capital is considered to be a part of operational capital.
Why is working capital important?
Working capital is a gauge of a company's operational efficiency and short-term financial health. The working capital ratio, which is calculated by dividing current assets by current liabilities1, shows if a business has enough cash flow to pay its short-term obligations and expenses. Long-term loans, depreciation provisions, retained earnings, debentures, and share capital are examples of sources of long-term working capital. The sources of short-term working capital can be tax or dividend provisions, cash credits, public deposits, and more.
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