Working Capital

Cash outflow at the begining is like investment such as fixed asset which is realized at the end of the business, so the money will back and treated as inflow.

Hi, Thank you Mr Bijoy. However, the cost of fixed asset is incurred once in its life time and then depreciated till sold at the end of life. as a result we get the money back. in case of working capital the sum needs to be invested every year as a result we need to discount it every year but we dont do that. Hence request you to expedite. Looking forward for an explaination. Thanks, Varun