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There is specific query..Suppose If initial investment in working capital is 5000. And ques says that working capital may be assumed to remain constant during four years..Then what will be effect of this statement on cash flows… plz help me..what will be effect in zero period and other years..u tell me..I dont know…..
There is an outflow of 5000 at time zero, and (unless you are told otherwise) there is an inflow of 5000 at the end of the projects life.
(There is a lecture on here explaining how we deal with working capital in full)
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