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working capital in dcf

Jjatinkalra15y ago
is tax deduction given on working capital investments in npv calculations?
Former userFormer user15y ago#1
No - never

There are in general 2 classifications of cashflows in an NPV "Table of Cashflows"

(1) Operating Cash Flows .... it is within this category that you take account of Capital Allowances and TAX

(2) Other Cash Flows ... within which you have the Project Cost, Residual Value and Working Capital

Regards, Kevin
Jjatinkalra15y ago#2
thankyou very much you hav been a great help in these past weeks.
now just wish me luck for tommorrow.
thankyou
jatin
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